Prediction: This Warren Buffett Stock Will Join Berkshire Hathaway in the $1 Trillion Club by 2030

Core Insights - Visa's earnings growth may slow, but it is still positioned to deliver better returns than the S&P 500 by potentially reaching a $1 trillion market cap by 2030 [1][15] Company Overview - Visa operates a simple and effective business model, generating revenue from transaction volume and processed transactions, making it a reliable long-term investment [3][5] - Unlike American Express, Visa collaborates with financial institutions to issue cards, resulting in higher margins and lower credit risk [4] Financial Performance - In the latest fiscal year ending September 30, Visa reported an 11% increase in net revenue, 8% in payments volume, 10% in processed transactions, and a 14% rise in non-GAAP EPS [5] - Visa's non-GAAP EPS only declined by 7% during the pandemic, showcasing the stability of its business model compared to more cyclical financial sectors [7] Market Position and Valuation - Visa's current market cap is approximately $632 billion, requiring a compound annual growth rate of 9.6% to reach $1 trillion by 2030 [8] - The stock has seen a decline of over 10% in the last six months, resulting in a P/E ratio of 32.2, which is below its 10-year median of 34.3 [8][10] Future Growth Potential - Analyst estimates suggest Visa will generate $12.81 in EPS for fiscal 2026 and $14.43 for fiscal 2027, indicating continued growth in the low double digits [13] - Even with a potential slowdown in growth, Visa is expected to reach a $1 trillion market cap by 2030, supported by its strong business model and cash flow [11][14] Investment Consideration - Visa is viewed as a balanced buy for long-term investors, with a fair valuation and a clear path for future earnings growth that is not heavily reliant on favorable economic conditions [14]