Bruce Murray Visa Inc. V-N HOLD Aug 07, 2025

Many times people have challenged or sold Visa, and every time they were wrong. They will be wrong again.

Is consolidating, just like the S&P these days. Nothing wrong with consolidating, as long as it doesn't break down. Visa's chart looks fine.

97% gross margins, and 60% operating margins. A play on global transaction volumes. Worries about stablecoins; but however people decide to pay for something, Visa will take its share. There will always be competitive threats, but its network is a backbone of payments and can't easily be replicated. Yield is 0.68%.

Largest payment processor in the world. Still lots of growth potential outside NA for transitioning from cash to digital. Value-added services, such as cybersecurity, are now almost 25% of revenue base. Robust network. Don't discount them because of stablecoin, will be actively involved.

Really high quality, but quite expensive. Great performer for a decade. More and more people are using credit cards. Concerns about different crypto currencies, but so many people still use their Visa cards.

Remains one of the best compounders out there. Has moved beyond swipe fees to value-added services; fraud tools and data analytics continuing to grow extremely quickly, now accounting for over 25% of revenue. Core business benefiting as travel rebounds. Consumer spending remains resilient. Trades at 31x forward PE, not cheap but fair.

It reports Tuesday. It always sells off after it reports, because its financials are hard to understand.

A good name to look at for credit services in the financial sector.

Recent struggles are probably due to stablecoin, which is tied to the US dollar. If it can manifest into an efficient system (very low, or zero, transaction fees), could be a threat to V's business. Visa also has the ability to change its fees or to set up its own stablecoin. He's not too concerned, it's really just noise. This is his favourite.

Down 8% off 52-week high, which is normal trading that can happen to any stock at any time. Down 3% this week. As good a time as any to buy.