Mastercard Inc. (MA-N)

Owns shares for past 5 years.
Move to cashless society good for business.
Recovery in global travel helping with revenue.
Good business for long term shareholders.
Expecting double digit earnings growth.
Current share price not cheap.
Excellent management team.

He owns Visa. Both trading at 52-week highs today. Wide moat, huge pricing power. Lots to like still. The type of business you can hold for multi-decades. Such a large network effect, they're in good shape for the long term.

Excellent business model.
Under regulatory watch, but not concerned.
Very robust network effects. 
Strong security to protect customers from cyber attack.
Excellent profits and free cash flow.
Investing in new lines of business.

The valuation of Visa and Mastercard has been elevated, but the growth has supported it. AmEx has the cheaper valuation; they benefit from international travel. He owns a little Visa. The future of payments processing? It's Apple Pay, which kids use through their phones. The sector has a lot of moving parts and competition, so it's hard to say where it's going.

It's a tech stock. Next to Visa, they're the king of transaction processing. They just bought Africa's largest cell network. Interesting that a credit card company is buying a cell company. MA is a money machine. They just beat top and bottom and extending guidance. It's his 4th-largest holding. You can buy it partially now and watch for fall volatility to add more.

Fundamentally, it's worthwhile to understand that Visa is the granddaddy of the card business. Visa does more transactions that all competitors combined, 60% of business is international, more of a footprint in debit cards. Prefers Visa at a few multiple points cheaper, with potential of high $8 or low $9 EPS for next year.

He doesn't dislike MA, very similar structures and business plans. It's done well.

 MA has shown its ability to compete, and also adapt, over decades. The cash-to-card trend is not likely to go away. Travel is coming back. Lower costs can still improve margins and AI could help its data mining. There are positives to offset the negatives noted. Certainly from an earnings standpoint, based on consensus estimates, no slowdown in growth is expected for three years at least. We think if investors were concerned it would lose it 'premium' multiple (31X). But it is not a company we would bet against, and we would be comfortable buying/owning it today.
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He prefers Visa, but both are good. MA gives more international exposure, so maybe a bit more growth. Defensive business models. Moving to the Financial sector of the S&P 500, so it will boost performance of that sector.