Why Visa Might Be Warren Buffett's Quietest Cash Printing Machine

Berkshire Hathaway holds stakes in 6 Dow components, but here’s the thing: Visa is the sleeper pick that deserves more attention in 2026.

Visa’s business model is almost unfair. It converts nearly 50% of revenue into free cash flow — that’s not a typo. Why? Because Visa doesn’t issue cards, doesn’t bear credit risk, doesn’t pay cardmember rewards. It’s pure network effect with minimal capex.

Fiscal 2025 breakdown:

• Operating cash flow: $23.06B
• CapEx: Only $1.48B
• Free cash flow: $21.58B

Here’s where it gets spicy: Visa returned $22.8B to shareholders last year — $18.19B in buybacks + $4.63B in dividends. That aggressive buyback strategy means fewer shares outstanding + same earnings = higher EPS automatically.

Valuation check: P/E of 32.3x trailing earnings sounds high, but it’s actually below Visa’s 10-year median of 34.3x. Translation: despite 4x stock appreciation in a decade, it’s reasonably priced.

The kicker? Visa should still deliver low double-digit earnings growth annually, even if consumer spending softens. That’s rare quality in today’s market.

Buffett clearly knows something about capital-light, high-margin networks. Visa checks every box for 2026.