Visa Inc. (V)

Long-term move from cash to digital, especially in EM. Since late 2021, performing quite nicely against the S&P 500. Drop today of $5 is not significant, secular benefits outweigh short-term moves. Hitting new highs, continues to like and add.

Very strong business with global presence. 
Large network.
Move to cashless society good for business.
Excellent brand value.

Both Visa and MA are trading at 52-week highs today. Wide moat, huge pricing power. Lots to like still. The type of business you can hold for multi-decades. Such a large network effect, they're in good shape for the long term.

Hitting a new high today. People are travelling and spending, maybe not hugely, but still spending. Also, if interest rates decline, it will be positive.

Still a global digital payments giant. Serves both individuals and businesses. Will benefit from ramp up of people leveraging up and borrowing. Fundamentally, 10/10. Nice run up. Long term, great business.

The valuation of Visa and Mastercard has been elevated, but the growth has supported it. AmEx has the cheaper valuation; they benefit from international travel. He owns a little Visa. The future of payments processing? It's Apple Pay, which kids use through their phones. The sector has a lot of moving parts and competition, so it's hard to say where it's going.

Clear path on profitability.

Opening up the market for other credit cards outside Visa/Mastercard not a concern.
Tremendous company with excellent brand and value proposition.
Would recommend holding for the long term.

The payments sector is one you want to be in, and this is his favourite. Though regulatory concerns exist, Visa is the largest payment network and the most profitable.

Participated in this rally. Visa benefits whether consumer buys goods or services. Payments volume is larger than MA's. Growth trend from cash to digital payments, plus e-commerce growth will continue. Yield is 0.74%.

Fundamentally, it's worthwhile to understand that Visa is the granddaddy of the card business. It does more transactions that all competitors combined. 60% of business is international. More of a footprint in debit cards. Prefers Visa at a few multiple points cheaper. Potential of high $8 or low $9 EPS for next year.

He doesn't dislike MA, very similar structures and business plans. It's done well.

People will continue to swipe and Visa got added to the XLF. Earnings will continue to rally until financials report in two weeks.

We don't have a 'internal thesis' on Visa, but the general thesis is that a large amount of transactions done need to go through the 'infrastructure' of either Visa or Mastercard. Also, companies need to accept these cards because not doing so could mean that customers are unable to actually buy good/services from that store. So, they also have some scale advantages due to their market share. 

Fundamentally, they are very solid with 50%+ net margins and tend to grow the top-line at a consistent 10% annually. At 24X forward P/E, the shares might not be 'cheap' but we don't think it looks like an egregious valuation either. 
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It's really a technology company, not a credit card company. A platform for many companies in the e-space.

Tremendous recovery on fundamentals since Covid, yet the stock's gone nowhere on worries about regulation and competing payment structures. He still sees double-digit growth of 10+%. Very attractive valuation.