Visa Inc. (V)

Buy and hold or take profits? The payments world is changing. In China, you can't use your Visa or Mastercard, because they take Alibaba Pay instead, which costs retailer far less. He was surprised when he went to China last year. China uses mobile payments, not plastic. That said, Visa is incredibly well-positioned and performed so well. There's no reason that China will take on credit cards.

AmEx, Visa or Mastercard? They're all great. Visa and MA are pure-play payment processors vs. AmEx which is also the issuing bank. They play on electronic payments with people buying more and more online, but V and MA reaches a wider breadth of customers/users. AmEx still focuses on richer people. V and MA will always have a higher multiple because they're viewed as tech companies. They're all great holds for 5-10 years.

It is hard to distinguish between itself and MA-N. It is one of the two largest in the world with great tailwinds. The US is still moving to payment cards.

The financial space is a great area -- he prefers the IPAY-N ETF instead. Visa has spent a lot on cyber-security, giving it an advantage. Cash still represents 32% of transactions, 50% in the OECD countries, so there is still more runway to go. Volumes continue to grow. Value may be a little rich here, based on the PE ratio, but considering its growth it is still decent value.