Worried About Inflation? Take a Look at These 2 Warren Buffett Stocks.
Key Points
These two companies derive revenue directly from spending activity, giving them a unique position in the economy.
When inflation surged in 2022, both businesses were able to report strong revenue growth.
These financial stocks never trade at bargain valuations, but their current entry points are worth considering.
According to the latest forecast from the Organization for Economic Cooperation and Development, inflation in the U.S., as measured by the Consumer Price Index, will be 4.2% in 2026. That's up from previous guidance of 2.8%, due to rising energy costs from the Middle East conflict.
Another critical, but chronic, problem, is the government's excessive spending. The U.S. has $39 trillion in federal debt, which will likely lead to consistent money printing over the long term.
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After understanding this backdrop, it makes sense if persistent inflationary pressures are a top concern for you. Maybe it's time to look closer at these two Warren Buffett stocks that your portfolio might need right now.
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These two businesses are inflation beneficiaries
The two Buffett stocks to consider are Visa (NYSE: V) and Mastercard (NYSE: MA). Combined, they only make up 1.4% of Berkshire Hathaway's gargantuan public equities portfolio. However, that small weighting should not take away from these outstanding businesses.
Visa and Mastercard are two massive card payment networks. During the three-month period ending Dec. 31, 2025, they handled $7.4 trillion in payment volume in total. And there are billions of their cards in use around the world.
Since these two companies benefit from greater spending activity that occurs across the economy, they're naturally inflation beneficiaries. If the cost of gas, groceries, transportation, or healthcare rises, people still swipe their credit cards. Since Visa and Mastercard take small percentage fees, these transactions directly impact their revenues.
Inflation surged at a pace that was at a more than 40-year high in the summer of 2022. During its fiscal 2022 (ended Sept. 30, 2022), Visa posted a revenue increase of 22%. Mastercard's top line expanded by 18% during calendar 2022. Their profits also soared.
If inflation picks up in the future, investors who own these stocks are in a good position. This is also the case if inflation remains at an above-normal trend or falls back to the Federal Reserve's 2% target. Over time, more economic activity, spending, and generally higher prices present a durable tailwind for Visa and Mastercard.
Is it time to buy the dips?
These financial stocks don't ever trade at bargain valuations. But the market is giving investors a window right now.
Visa and Mastercard shares trade 21% and 19%, respectively, below their peaks (as of March 27). Investors can buy the former at a price-to-earnings ratio of 28, while the latter goes for a multiple of 29.4. I think these are reasonable entry points to own two elite businesses.
Should you buy stock in Visa right now?
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.
