When it comes to investing, it’s often the unflashy, steady performers that ultimately yield the greatest returns. Warren Buffett’s Berkshire Hathaway is a prime example, consistently outperforming the market over time. Savvy investors would do well to take a page from Buffett’s playbook and explore three of his top holdings that could be valuable additions to any portfolio this month.
First up is Visa, the credit card giant that’s quietly revolutionizing the payments landscape. With its digital ecosystem, Visa is poised to capitalize on the global shift away from cash and towards online transactions. Recent innovations, such as platforms designed specifically for Latin American governments and tools enabling merchants to build customer loyalty programs, demonstrate the company’s commitment to expanding its reach and revenue streams. Despite the current economic slowdown, Visa’s third-quarter revenue grew 10% year-over-year, outpacing global economic growth. Analysts expect this trend to continue, driven by the vast opportunity to displace traditional payment methods and introduce new profit centers.
Next is Occidental Petroleum, an oil and gas stock that may seem counterintuitive in today’s environmentally conscious era. However, Buffett’s continued investment in Occidental speaks volumes about the sector’s enduring potential. While alternative energy sources are gaining traction, fossil fuels still account for a significant portion of global energy production. In the United States alone, crude oil and natural gas make up over 60% of total utility power production. With the Energy Information Administration predicting crude oil will remain a dominant source of power until at least 2050, Occidental’s expertise in drilling, extracting, and refining oil positions it for long-term success.
Lastly, consider Nu Holdings, an online bank serving the Latin American market. With over 100 million customers across Brazil, Mexico, and Colombia, Nu is well-positioned to capitalize on the region’s burgeoning digital economy. As Latin America continues to evolve as a “mobile-first” market, Nu’s offerings are poised to resonate with consumers. Market research forecasts the region’s banking-as-a-service market to grow at an annualized rate of over 19% through 2028, and Nu’s recent 65% year-over-year revenue growth suggests it’s already benefiting from this trend. While Berkshire Hathaway’s stake in Nu may be relatively small, Buffett’s endorsement speaks to the company’s immense potential.
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