Here are the Compelling Reasons to Own Visa (V)

Here are the Compelling Reasons to Own Visa (V) Soumya Eswaran Wed, July 22, 2026 at 4:24 PM GMT+2 3 min read CL=F V ^GSPC Dodge & Cox Fund , an investment management company, released its second-quarter 2026 investor letter for "Dodge and Cox Stock Fund". A copy of the letter can be downloaded here . Despite volatile oil prices and rising inflation, U.

S. equities reached record highs in Q2 2026, driven by a technology-led rally, particularly in memory semiconductors. The Fund's Class A shares returned 5.

57%, underperforming the S&P 500 Index's 15. 20% return and the Russell 1000 Value Index's 13. 84% gain, mainly due to underweighting in Information Technology and weak performances from several holdings.

Concerns over AI disruption negatively impacted companies with strong franchises. The Fund's bottom-up investment approach allowed it to acquire shares in industry leaders with strong long-term fundamentals. The firm believes that increased exposure to high-quality businesses and a diversified portfolio positions the Fund well for future growth.

In addition, please check the Fund's top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Dodge and Cox Stock Fund highlighted its new purchase, Visa Inc. (NYSE: V ).

Visa Inc. (NYSE:V) is a multinational financial services company known for its payment technology network that offers credit, debit, and prepaid card products and other services. On July 21, 2026, Visa Inc.

(NYSE:V) closed at $355. 82 per share. One-month return of Visa Inc.

(NYSE:V) was 7. 10%, and its shares gained 0. 15% over the past 52 weeks.

Visa Inc. (NYSE:V) has a market capitalization of $676. 68 billion.

Dodge and Cox Stock Fund stated the following regarding Visa Inc. (NYSE:V) in its Q2 2026 investor update: "During the second quarter, concerns about AI disruption led to declines in a number of companies with strong franchises and solid profitability. Our bottom-up approach led us to establish several new positions in industry leaders whose shares have lagged, and where we believe the long-term fundamentals are not fully reflected in their current prices.

We initiated a position in Visa, a leader in global payments, an industry characterized by strong network effects and high barriers to entry. Visa Inc. (NYSE:V) is expanding beyond transaction processing into fraud prevention, data analytics, and digital commerce.

We believe the shares are undervalued at less than 24 times forward earnings, a price that reflects investor concerns over potential regulatory headwinds, including proposed caps on credit card interest rates and fees. Given Visa's high operating margins, strong free cash flow, and growth opportunities beyond its core business, we believe investors are underestimating the durability of its competitive advantages. " Story Continues Is Visa Inc.

(V) the Best Blue Chip Stock to Buy for 2025? Visa Inc. (NYSE:V) ranks 9th on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 .

According to our database, 181 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the first quarter, compared to 184 in the previous quarter. In the second quarter of fiscal 2026, Visa Inc.

's (NYSE:V) net  revenue  grew 17% year-over-year to $11. 2 billion and EPS increased 20%.  While we acknowledge the potential of Visa Inc.

(NYSE:V) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . In  another article , we covered Visa Inc.

(NYSE:V) and shared Wedgewood Partners' views on the company. In addition, please check out our hedge fund investor letters Q2 2026  page for more investor letters from hedge funds and other leading investors. READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years .

Disclosure: None. This article is originally published at Insider Monkey .