Visa Inc. (V)

Threats from cryptos? Before cryptos have any impact on Visa, remember that Visa offers total safety in transactions. This and MA-N won't be displaced and if so, not very much. Both credit card stocks are very expensive, 50% overvalued. If there's a bear market, Visa will tumble.

Will benefit from today's FDA granting full approval to Pfizer's Covid drug, which will encourage cross-border travel. He's long liked this. This and Mastercard have been beaten up despite reporting strong quarters.

What does he think over the next 5 to 10 years. It is a great company and you could comfortably hold it for probably a decade. We are not in the early innings in the transition away from cash. As the global economy grows, Visa and MasterCard are too big to fail. As a merchant you have to have a value if you don't want to lose out. A lot of the smaller competitors are using the network of these two guys.

Most payment companies are going to compress over time due to their growth rates. Digital wallets are going to be more popular going forward. He prefers V-N to get exposure. He would prefer Paypal over Square.

Amex vs. Visa Visa. Once international travel picks up, transaction activity will rise. Same with business travel. Visa will benefit from both. Amex also, to a certain extent. The different is that Amex offers credit, while Visa is purely transactional. So, Visa doesn't carry credit risk on those balances while Amex does. This is why Amex trades at a lower multiple. She likes the digital commerce space because it will continue to grow and replace cash, which we saw during the pandemic.