Visa Inc. (V)

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.

Doesn’t think there has been a pullback since this company went public, and that is because the runway is so massive. 80% of all worldwide transactions are still done with cash. They acquired Visa Europe. Europe is about 79% transactions with cash. Dividend yield of 0.7%. (Analysts’ price target is $125.00)

Has a very healthy uptrend. If you think you missed the ride and you want to participate, look at the RSI (relative strength index). Try to avoid buying when the RSI is overbought and when the stock is a little cheaper.

The acquisition of Visa Europe has been a game changer, and you can see that on transaction volumes. He would like to see a little more growth here. He continues to buy for new clients.

A US name and he leaves these to a colleague. He knows his company likes the names. A lot of investors are concerned about ecommerce, but he thinks it is a benefit of these companies. They are transactions oriented.

(A Top Pick Oct 13/16. Up 38%.) He is not sure there is going to be any pullback, because the runway for growth is so enormous. The penetration of credit cards is very low in China and Southeast Asia.

A very, very predictable company. They don’t take credit risks, they’re a transaction company. They work their magic and replace cash with plastic. Have broken through geographically by becoming a more international company. They’ve been the leader in debit cards, which has become a dominant form of payment. They compete very well against competition. He would suggest you buy a half position and then leg in.

He is quite positive on all credit card companies, particularly this one. The chart shows a steadily rising price through the years. With improving economies and rising employment, this is a perfect environment for companies like this.

A fine company. As he went through the process of deciding between this and MasterCard (MC-N), he chose this one because they owned a company that provides fast HCH services, which allow payment processors to verify whether or not a check or electronic debit is good or NSF, and whether or not to process it. Feels MasterCard is a little more future proof because if payments move off of its network, they would participate in other kinds of payment processes. However, it is likely to perform very similarly to Visa.

(A Top Pick Jan 27/17. Up 30%.) The acquisition of Visa Europe is starting to pay dividends. The average purchase price is increasing. Ultimately this is a structural growth story and thinks it will continue. Still a Buy.

(A Top Pick July 24/17. Up 8%.) It is hard to go wrong with this company. He can’t think of anybody better to take advantage of online electronic payments. A phenomenal company.

(A Top Pick May 17/17. Up 17%.) With the Equifax problems, digital and online security has been foremost in most minds now. This company has invested heavily in security, a major factor for them. Everything is shifting to online now, with less and less cash being used.

Global business benefited from a healthy economy, as payment volumes grew in every major region. In the US they saw strong consumer confidence continue to drive spending growth. Have filed an application with the People’s Bank of China in order to participate in China’s domestic market. If they get that, that will probably be the next leg up. He doesn’t mind the stock, but does mind the price. If you want to buy, he would only do a half position and deal with it later.

This has been a wonderful investment. With all the FinTech proposals and money transfer, etc. the market is not worrying about those. It probably goes sideways from here, because either the merchants will want fees reduced or someone comes up with a cheaper form of transfer. If you own this, it never hurts to take profits.