Visa Inc. (V)

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.

Toll booth, no credit risk. Recovering from pandemic downturn in travel. B2B is growing rapidly. On cutting edge of mobile environments. No one can duplicate processing power. Lots of international growth from remaining cash transactions. Yield is 0.81%. 

Cross-border travel is a big component of revenue, and this will continue. Fees are coming under pressure, but it's a toll booth. Not a ton of overhead. Once the payment networks are in place, very hard to get off. Trend is away from cash. Increased fraud management and security alerts help solidify loyalty to the ecosystem. Yield is 0.8%.

Does not own shares in business.
Very strong network effect.
Prefers Mastercard.
M&A strategy very strong.
Good long term investment.

Benefiting from pickup in travel. Initially bought it for the long-term secular shift from cash to digital. Thesis still intact, lots of runway around the world. Cross-border travel is increasing. Slowing volume in NA, but still anticipating double-digit revenue growth for Q2. Still benefits when people use it to buy essentials.

Owns shares in the company.
Believes prospects for company are excellent.
Product used by huge amount of population.
Strong management team.
"Cashless society" will benefit credit card companies. 

No credit risk, just a tollbooth. Good growth globally, as lots of people still use cash. Travel is increasing, which is important to Visa. Great B2B growth. No one yet has been able to copy its payment system. Yield is 1%.

World's leader in digital payments. $32B in expected revenue this fiscal year. Revenue and earnings exceeded expectations. Benefiting from post-Covid rebound in international, high-margin travel. Global brand recognition, strong balance sheet, dominant market share. Outperforming the S&P since late 2021. Continued move from cash to digital. Predictable earnings and sales growth. Yield is 0.80%.

A major position for her. Unlike some AmeEx and some companies, Visa reiterated that the consumer remains strong. A different spin or customer from AmEx? Don't know.

They just reported. It's the right stock to own now: geographically diverse and transaction-oriented. Cross-border volume was up 24%. This is how to participate in Asia-Pacific's reopening. Now is the perfect climate for Visa and Mastercard. Q3 net revenue growth expected to be in low-double digits.