2 no-hassle Warren Buffett stocks to buy right now

Want to beat the market? Be careful what Warren Buffett buys.

The shares of his holding company Berkshire Hathaway they have beaten the market by leaps and bounds over the decades. Right now, two of Buffett’s current holdings look poised to soar.

This Buffett stock is almost too good to be true

You know the saying: If something seems too good to be true, it probably is. The key word here is “probably”. In some cases, investors can get the best of both worlds, and that’s the case right now with the payment processor Visa (V 0.69%).

Berkshire currently owns a $2.2 billion stake in the company. Visa runs a business model with a wide economic moat that generates huge profits while benefiting from the immense power of network effects. What price has the market placed on such an incredible business? Visa stock currently trades at just 29 times earnings — about the same as the average S&P 500 stock.

How does one of the most profitable and highest quality businesses on the market not trade at a premium to the rest of the market? This seems like a mispricing that could be fixed very quickly.

You’re probably familiar with Visa as a brand, and you may have one of its credit or debit cards in your pocket right now. But did you know that the company controls 61% of the US credit and debit card market?

Only three companies control the rest. It is a very consolidated industry with only a few major players and Visa is by far the largest. This gives it pricing power in an asset-thin industry, resulting in high profits, high returns on equity and sustained growth rates.

The issues holding back the stock right now are short-term. Earnings growth is slowing after a post-pandemic surge, and concerns about the economy, consumer spending and regulatory issues add more near-term uncertainty.

But Visa remains the perfect Buffett stock: Even a weak management team could not retain the valuable structural advantages that Visa has in terms of market share and profitability. Visa is trading in line with the rest of the market and this looks like a chance to invest in a blue chip stock that can be held for life.

V Price-to-earnings ratio from YCharts.

This company will be a growth monster

Buffett isn’t necessarily known as a growth investor. But there is one stock in its portfolio right now that is a monster when it comes to sustaining high growth rates for long periods of time.

Few American investors know about this company, which operates exclusively in Latin America. But that didn’t stop Berkshire from betting more than $1 billion on the company’s stock.

I’m talking about the digital bank operator Not Holdings (NOT 1.58%) — one of the most underrated stocks on the market today. The company launched in 2013 offering a simple debit card to consumers in Brazil. Today, it has over 100 million customers. And despite the company’s $70 billion market cap, revenue continues to grow at more than 60% per year.

What is Nu’s secret? He dared to go where the market would not.

Prior to the company’s launch, Latin America was dominated by a handful of existing banks that charged high fees for simple services using legacy brick-and-mortar branches. It didn’t change the industry by offering its services directly to consumers via a smartphone.

This approach cuts costs considerably, allowing Nu to compete aggressively. The smartphone approach has also allowed it to engage with customers and launch new services and features much faster than its heavy-handed competition.

Nu shares don’t look cheap on the surface, and shares are trading at 44 times earnings. But sales and profits are growing so fast that this expensive multiple should look like a bargain. Based on next year’s estimates, the stock is trading at 33 times earnings — just a slight premium to the market.

You’ll have to be patient with this pick, but Nu should prove to be one of the best growth stocks on the market over the next few years.