Buffett’s smartest stocks you can buy right now for $1,000

When looking for new investment ideas, be sure to check out Warren Buffett’s portfolio. Buffett’s investing strategy has beaten the market for decades. And starting with his favorite stocks can immediately give your portfolio the strength it needs.

There are two Buffett stocks in particular that stand out as incredible value right now.

Take a risk by investing in these proven blue-chip stocks

Buffett was the first to buy shares of the company Visa (NYSE:V) in 2011 at about $40 per share. Today, the company’s value is over $250 per share. But Buffett isn’t selling, even after U.S. regulators filed a recent antitrust lawsuit last month.

As you probably already know, Visa operates one of the largest payment processing networks in the world. In this industry, scale matters. From the point of purchase to the financial institution processing the payment, payment networks must be vast to connect literally billions of nodes that must work together seamlessly, instantly and with minimal error.

As of the most recent quarter, Visa had more than 4 billion active credit and debit cards under its banner, helping to process more than $3 trillion in payments over the past 12 months. Visa controls a larger share of the market than its next three competitors combined, according to data compiled by Statista.

In short, Visa operates in an industry that requires scale. And while decades of lawsuits have sought to derail the company’s dominance, its massive market share is at least partly the result of the industry’s natural dynamics, not intentional actions. Following a recent correction due to lawsuit fears, the stock is now trading at just 25 times futures earnings. That’s about as cheap as it gets for a highly profitable company with pervasive brand awareness and a strong economic moat – not to mention Buffett’s direct backing.

There are some short-term risks, but this seems like a great starting point for patient shareholders willing to look beyond short-term volatility.

Choose to grow with this fintech superstar

Investors looking for maximum growth potential should pay attention to fintech stocks. These companies combine the rapid growth of technology companies with the huge reachable markets of financial companies. As a result, fintech stocks could rise much faster and for much longer than most predict.

One of my favorite fintech stocks right now is Nu Holdings (NYSE:NU). Buffett bought Nu shares in 2021, and his position is now valued at around $1.4 billion.

Haven’t you heard of Nu? It’s not a surprise. The company only operates in a few Latin American countries. It started in Brazil about a decade ago, but has since spread to Mexico and Colombia. It achieved enormous success by following a simple strategy: offer financial services not through a physical bank branch, but directly to consumers via their smartphones.

The story continues

When the company was founded in 2013, it was an innovative idea that took the market by storm. Today, more than half of Brazilian adults are Nu customers, showing how well the company can expand into new markets and grow at exceptional speed. The best news is that Latin America has a population of over 600 million people, so Nu’s runway should last for years, if not decades.

With a market capitalization of $60 billion, Nu’s peak growth period may be behind it. Surprisingly, however, revenue growth continues to average above 50% year-over-year. And the company is already profitable, with shares trading at just 31 times forward earnings. Buffett was an early investor in shares of this fintech company with impressive long-term growth potential. But at this valuation, it’s not too late to jump in.

Is it worth investing $1,000 in Visa now?

Before you buy stock in Visa, consider this:

The Motley Fool Stock Advisor a team of analysts have just identified what they think it is 10 best stocks for investors who could buy now… and Visa wasn’t one of them. 10 stocks that made a cut could deliver monster returns in the coming years.

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Ryan Vanzo has no position in any of the companies mentioned. The Motley Fool has positions on and recommends Visa. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.

Buffett’s Smartest Stocks You Can Buy Right Now for $1,000 Originally published by The Motley Fool