Visa Inc. (V)

Has owned this over the last 3 years. He likes to invest in structural themes, and people are moving to digital transactions. It’s happening all over the world. This company continues to beat consensus. This is the absolute leader in digital payments.

Having taken most of my money out, how do I know when to sell my last bit, or do I keep hanging on forever as I’m just playing with the house money? This is really the core of investment management. It's a question every investor and investment manager has to understand, come to terms with, and create a disciplined approach to the answer. You have to have a rule-based investment philosophy to allow long-term success. It's not "house money", it's your money. You should think of your profits, not in terms of the relationship with a cost of your investment, but just in absolute terms. It's your money. It doesn't have any less value because you've earned it in the market. Also you shouldn't just be holding on because it is "winning". You have to always be looking at the company in terms of how is it trading today relative to its past, and what might happen in the future. You have to judge a company every day, asking yourself if it is something you would buy today.

A great business. Not a cheap stock. There are probably some concerns in the near term with the hype over crypto currencies and different payment mechanisms replacing Visa. However, the negative sentiments around this are misguided. It’s a great franchise and people are going to continue using credit cards for a long time to come. It’s expensive, but is a type of stock that if there were a pullback in the stock or the market, it's one you would want to step in and buy.

This company is ahead of itself by a fair degree, in terms of its price versus its intrinsic value. As a consequence, this is a speculation from a FMV point of view, and about 40% above FMV. Looking back at the history, the stock and the FMV have had a historic tendency to come together. Earnings are going up at a nice rate, but the stock is going up at a faster rate.

One of his biggest holdings, and would continue to own it. The core volume trends are great. This has a clear runway. It may have a 5% pullback, which would be normal, but it could take a while, so he wouldn't wait.

(A Top Pick Jan 11/17. Up 47%.) Wouldn't necessarily be chasing this one. When it pulled back to $106-$107, she added to new clients’ accounts. A secular play to online e-commerce. In a lot of countries, especially in emerging markets, cash is still the primary form of payment.

The trend is your friend until it ends. This has arched off the trend line. You don't Sell until it starts breaking down. Like the market, the volatility has been very low.

He does not own this or MA-N. They have been a play on consumer spending around the world and have done well. These are not value stocks and he is a value investor. It is a growth investment.

This has effectively done nothing but move up. It is driven off the back of a structural transition from cash to online payments. That transition is continuing to grow. Last year they bought Visa Europe and are in the process of integrating it. That was a not-for-profit company, so they are taking a lot of the fat and commercializing it and looking for synergies. This should continue moving higher.

The dividend is under 1% so people don’t own it for that. It has been a phenomenal position. They beat expectations by 5 or 6% past quarter. They will continue unless there is a major philosophy change. They will continue with their buybacks.

You need to own this. He doesn’t own it because his company’s mandate has a requirement that a business pays a dividend of at least 1%. It’s a name which is never going to feel good to own, because when it goes up you make great money, but end up with the million-dollar question of is it going higher or do you cash out.

How does the recent news of Bitcoin affect this company? The idea of Bitcoin and blockchain technology is a very legitimate and growing misunderstood space. It is going to be a force to be reckoned with. This company is not going to just sit by and let it happen without being involved. Visa continues to be a core holding for him.

This is in the right space. Financials are pretty strong. There are better places in financials, but this one has a nice long-term trend. In the last little while, the trend has gotten a little steeper, and when that happens you are a little more susceptible to a pullback. He would watch for it to come back to just below the $106 level.

V-N vs. MA-N. They keep going up. V-N is slightly better valuation than M-N and he prefers to by M-N when it is two or three multiple points between the two. Generally speaking they are both great and have a huge runway ahead of them. A lot of countries are still just scratching the surface. He just owns V-N right now.

This just broke to an all-time high today. It looks fantastic. The period of seasonal strength is normally from around mid-October through until approximately the 2^nd week in January. If you own, consider holding until approximately the middle of January.