
NYSE:V
AmEx, Visa or Mastercard? They're all great. Visa and MA are pure-play payment processors vs. AmEx which is also the issuing bank. They play on electronic payments with people buying more and more online, but V and MA reaches a wider breadth of customers/users. AmEx still focuses on richer people. V and MA will always have a higher multiple because they're viewed as tech companies. They're all great holds for 5-10 years.
It is hard to distinguish between itself and MA-N. It is one of the two largest in the world with great tailwinds. The US is still moving to payment cards.
The financial space is a great area -- he prefers the IPAY-N ETF instead. Visa has spent a lot on cyber-security, giving it an advantage. Cash still represents 32% of transactions, 50% in the OECD countries, so there is still more runway to go. Volumes continue to grow. Value may be a little rich here, based on the PE ratio, but considering its growth it is still decent value.