Thoughts on Mastercard, Visa and other payment enablers

MA market cap is $210.339 Billion

I would buy MA over V or AXP

MA survived the 2009 meltdown & all the corrections along the way, including it's 10:1 split in January 2014 - my guess is $500 billion in 10 years

Own both V and MA... everytime I sell... end up buying for higher later so decided to just buy bit of both and let them run.

$1T in a decade at a reasonable valuation? I find that unlikely. That would require a compounded growth rate of 17% for the next decade, while maintaining its extremely high multiple. A much more likely outcome is a decline of growth rate combined with multiple compression.

V is one of the biggest holdings in our portfolio but like MA, much of the anticipated growth is already priced in. I'll be really happy if it delivers 17%/yr for the next decade, but I'm not expecting it. But I will say, out of all the high flyers in the market these days, these 2 companies probably have the best odds of actually growing into their sky high valuations. Their biggest risk is probably regulatory, due to them being TOO profitable.