Visa Inc. (V)

This has effectively done nothing but move up. It is driven off the back of a structural transition from cash to online payments. That transition is continuing to grow. Last year they bought Visa Europe and are in the process of integrating it. That was a not-for-profit company, so they are taking a lot of the fat and commercializing it and looking for synergies. This should continue moving higher.

The dividend is under 1% so people don’t own it for that. It has been a phenomenal position. They beat expectations by 5 or 6% past quarter. They will continue unless there is a major philosophy change. They will continue with their buybacks.

You need to own this. He doesn’t own it because his company’s mandate has a requirement that a business pays a dividend of at least 1%. It’s a name which is never going to feel good to own, because when it goes up you make great money, but end up with the million-dollar question of is it going higher or do you cash out.

How does the recent news of Bitcoin affect this company? The idea of Bitcoin and blockchain technology is a very legitimate and growing misunderstood space. It is going to be a force to be reckoned with. This company is not going to just sit by and let it happen without being involved. Visa continues to be a core holding for him.

This is in the right space. Financials are pretty strong. There are better places in financials, but this one has a nice long-term trend. In the last little while, the trend has gotten a little steeper, and when that happens you are a little more susceptible to a pullback. He would watch for it to come back to just below the $106 level.

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.