Warren Buffett has built a legendary investing career by following a disciplined approach to value investing. Under his leadership, Berkshire Hathaway has delivered an annual return of nearly 20% since 1965, more than doubling the S&P 500’s growth rate over the same period. As Buffett famously said, “Price is what you pay, value is what you get.” His ability to navigate market downturns and stay patient during crises has helped him consistently outperform the market.
Buffett’s investment style is focused on long-term growth, finding companies with strong fundamentals that are undervalued by the market. Here are three Warren Buffett-backed stocks that stand could be great additions to your portfolio.
Visa (NYSE: V)
Digital Payments Leader Positioned for Long-Term Success
Visa is another Warren Buffett favorite, with Berkshire holding a $2.3 billion stake in the global payments giant. While Visa’s position in Berkshire Hathaway’s portfolio is relatively small, the company’s potential for growth is immense. As the world continues to shift away from cash, Visa’s digital payments platform is positioned to thrive.
In recent years, Visa has expanded its services to help governments and merchants build digital ecosystems, positioning itself at the center of the digital economy. The company posted a 10% revenue growth year-over-year in Q3, driven by a 7% increase in payment volume. With analysts predicting that Visa’s top-line growth will continue for years to come, this stock offers strong long-term potential for investors looking to capitalize on the shift to digital payments.
Nu Holdings (NYSE: NU)
A Fintech Star in Emerging Markets
Nu Holdings, a digital bank serving Latin America, may not be as well-known as some of Buffett’s other holdings, but it has tremendous potential. With over 100 million customers in Brazil, Mexico, and Colombia, Nu Holdings is positioned to take advantage of the growing demand for digital banking services in the region. The company’s revenue surged by 65% last quarter, driven by its rapid expansion and the rise of mobile-first consumers in Latin America.
As Latin America’s digital economy continues to grow, Nu Holdings could see substantial growth in the coming years. The fintech company is a strong pick for investors looking to tap into emerging markets and take advantage of digital banking’s explosive growth.
Occidental Petroleum (NYSE: OXY)
Energy Giant with Long-Term Growth Potential
Occidental Petroleum has been a consistent holding for Buffett’s Berkshire Hathaway. Despite the rise of renewable energy sources, Buffett remains confident in Occidental’s long-term potential. Currently, oil and gas account for about 60% of U.S. power production, and this is unlikely to change in the near future. The U.S. Energy Information Administration projects that crude oil will remain a significant global power source well into 2050.
Buffett’s investment in Occidental is worth around $13 billion, making it one of Berkshire’s largest positions. The company’s strong management team, led by Vicki Hollub, and its ability to extract oil efficiently are key reasons for Buffett’s continued confidence. With energy demand remaining strong and oil prices expected to recover, Occidental is a solid long-term play in the energy sector.