Visa Inc. (V)

Visa (V-N) and MasterCard (MA-N)? The great thing about these is that they are not taking credit risks. They are a processing system and get their fee each time people use their card. Which one you buy would depend on which one you think looks cheaper.

This is a 30X earnings company, but they have such an amazing moat around their business. Even the new Apple Pay is forced to use Visa. They are delivering a 10%-15% earnings growth. He can’t buy it just on valuation. Probably has a long term 10% earnings growth ahead of it.

A story that he regrets missing. It is a toll booth essentially. They take on no credit risk. Apple-pay is done through Visa. It is in great shape. It is a very international company relative to MasterCard. When you had a pullback you should have bought the stock. There is a lot of growth and that is why people are happy to pay the higher multiple.

This is very tied into consumer spending, and the stock is a little expensive based on the fact that consumer spending, especially in the US, hasn’t been as robust as people had hoped. Americans have been holding onto their money and doing the prudent thing of paying down debt. It doesn’t help this company when the consumer is not spending. Long-term it is a great stock to own, but in the near term is probably due for a correction.

Their business is continuing to grow around the world and they have lots of opportunities. This is a growth company.

This business is on fire. More and more people every day are using credit cards as opposed to cash. This quarter probably won’t be so hot because of currency translations. Great business. He wouldn’t be aggressively adding to holdings, but would buy on pullbacks. Likes this better than MasterCard (MA-N).

General Electric (GE-N) or Visa (V-N)? This is a credit card company that trades at a much higher multiple. They don’t take on any debt, but instead they are a toll booth. Between the 2, he would probably pick Visa because it is a much better longer-term growth story.

Discover Financial (DFS-N) or Visa (V-N)? Visa has a much stronger earnings profile, and given the fact that the technicals are looking a bit rough on Discover, he would choose this one.

This company will benefit from mobile payments. The only problem is that this is trading at a very high multiple. This would be a wonderful candidate if you saw the market come off in a correction. If you have a longer-term perspective, continue to hold.

Not an inexpensive stock, but it is a high growth stock and a very predictable company. A transaction-based company. A lot of people think they have credit risks but they don’t. They basically get paid on the number of transactions. They are in the prime spot to benefit from the move to electronic payments.

This is a play on consumer spending. As the US economy has started to do better, V-N has done better. The same applies to Europe. It has been a fabulous stock. Loyalty cards are tending to switch to Visa or Mastercard. These two companies dominate the credit card world and this won’t change any time soon.

This has been a great company. It is certainly not cheap, but that is not the issue, it is the franchise. They have no credit risks whatsoever because they are a toll gate. They are very involved in Apple’s (AAPL-Q) iPay. Great story.

It is going to have a stock split. But these are the stocks you want to buy on a pullback. It’s been on a roll since the end of October. This is why we have corrections. Wait for a pull back of 20%.

Likes this, but doesn’t own it because of valuation. Trading somewhere around 30X PE. There is a real move towards not using cash, but using plastic, and we are still in the early to mid-stages of that. The question is, what kind of correction are you going to see before it takes its next run. He wouldn’t buy at this valuation, but would wait for a correction.

Has been doing well because it has the scale and you are seeing the growth in transactions. It has always been a high multiple stock. She just hasn’t seen a good opportunity to get in recently.