Visa Inc. (V-N)

Still buying, though not as cheap as a year ago, but it's a unique business that offers double-digit growth. It's a fintech company that collects money with each transaction (i.e. with Apple Pay). They enjoy a duopoly. Slightly prefers this over Mastercard for Visa's innovation, though likes both.

Trades at 30x earnings, but it's warranted. Part of a duopoly, and has branched out into analytic services from its core business. Benefits from switching from cash to digital. Huge moat. There will always be regulatory risk. Happy to hold.

Predictable business model. In a Republican administration, anti-trust stuff should be less difficult. We'll see how consumer spending goes. Travel has been pretty strong. Less economically sensitive. Great holding.

They beat top and bottom. They have a moat and never miss. European volumes are 141% of 2019, and emerging markets are up 21%. AI reduced fraud by 15%. Are up only 13% this year, so there's more catch up to come.

It's not cheap and shares get weak in a market downturn. However, the world is going digital in payments. Visa has low credit risk, because the banks are lending the money (Visa takes a transaction fee). Buy in dips. Is good for the very long run. Maybe other digital pay streams will eat into their market share, but maybe not for a long time.

It's the largest fintech company in the world. Trades around 25x PE vs. historic periods around low-30x. A consistent earner, and Visa consistently grows credit card transactions which leads to profits.

Trades at 17x PE, so he's waiting for a pullback. A great, long-term stock.

Every time there is a recession they target credit card companies so it becomes an opportunity to add. It has a modest but increasing dividend. It has a broader geographic exposure. He prefers Visa over MasterCard, as well as American Express with its balance sheet risk.

Regulatory issues on debit may affect how it does business, but this globally diversified company can manage it. Tactical opportunity to buy more and average into a compelling, long-term opportunity. Reasonable market multiple. Benefits from cash-to-card and push payments. Yield is 0.8%.

The US DoJ has filed a antitrust lawsuit against V, accusing it of monopolizing the debit network markets. As a result, V could see increased scrutiny and potential fines. The DoJ has also filed antitrust lawsuits against AAPL recently, and MSFT decades ago. 

We feel the most likely outcome is that V will agree to pay fines, but the process can be lengthy, and given its strong market position and robust balance sheet, we would view these pullbacks as good long-term buying opportunities. 
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On his shopping list. Dominant franchise in a duopoly with MA. Fantastic compounders, 10-year compounded total shareholder return at about 18%. Pullback from recent all-time high, on news that under DOJ scrutiny. Pullback is buyable, Visa will escape unscathed. Trades at 27x earnings, MA is ~34x. Discount to historical average of 29x.

Will continue its double-digit growth going forward. You buy these dominant companies on dips.

He's not concerned, because its monopolistic attributes attract this kind of scrutiny. Growth is phenomenal. Getting into other business ventures. Moat is expanding. Still likes it, especially compared to peer options.

Trades at 26x PE which is actually below historic levels. It keeps chugging along. The June quarter grew transactions by 9.4% and growing well internationally, twice as fast as US growth. 

Not concerned if there is a consumer slow down. Ability to generate consistent revenues. Strong brand recognized around the world. Technology allows for increased growth. Ability to generate strong profit margins excellent. Not concerned about regulation in the business - company able to maneuver around this. 

Money-making machine, dominant position, great opportunity. Earnings forecast to grow 12-15% a year for next 3 years. Not cheap at 29x earnings. Doesn't own it, but could. Won't be a world-beater but 12 months out, once the easing cycle takes hold, the consumer should start to improve.