AXP, MA and V

Stocks A to Z
1

Any opinions on which stock, AXP, MA or V, is the best investment? Berkshire owns all three, AXP since 2001 and MA and V since 2011. All three are very profitable. Since 2011 MA and V have outperformed AXP by a considerable margin.

2

Any opinions on which stock, AXP, MA or V, is the best investment?

Ignoring current valuation levels, I think Visa has the best and most durable business of the three, with Mastercard a close second.

Jim

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I own both MA & V. Recently added PYPL. I think credit cards have enjoyed their great run, the incremental growth is pretty much going to be tied to world economy.

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What’s in you wallet ? MA for me.

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What’s in you wallet ? MA for me.

How old are you grandpa? Just kidding… Look at digital payments growth…


	2016	2020	CAGR
PYPL	10842	21454	18.6
V	18358	24105	7.05
MA	10776	15301	9.16

In fact V’s growth is less than MA and the multiples some what reflect their growth prospects. Separately someone can argue their multiples are high, but what is one expected to do? My cost basis for V is < $70 and MA < $90; Either sell and incur tax, are just hold them. I know at some point the multiples may contract, you live with it.

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Thanks, all.

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Berkshire owns all three, AXP since 2001

Berkshire bought AXP much earlier, I think it was 1993. I remember that pretty well because I bought AXP shortly thereafter for my tiny portfolio. I sold in 2000 to buy Berkshire, it was my first four bagger. Unfortunately I never bought them back later when they were cheap again.

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Unfortunately I never bought them back later

It is a challenge. Your previous price (buy, sell) doesn’t matter. After few decades of Investing, trading, at last I am overcoming that. :slight_smile:

For ex: I bought a trading position in berky around $225 which I sold at $275 then on breakout again I bought around $300… :slight_smile:

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“If you lose money for the firm I will be understanding. If you lose reputation I will be ruthless”

I know he was talking about Berkshire here but I suspect he was applying the same rule to WFC.

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Sorry, wrong thread. I hope you can be understanding.

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Don’t take these rhetoric seriously. In the past it is proved as empty. We don’t know why he sold WFC, unless he shares it. We will not know the actual reason. We can agree or not agree. But he is the portfolio manager and there is no way you can fire him. So suck it up and live with it.

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Berkshire bought AXP much earlier.

Yes, in the 'salad oil 'scandal. Tino Valenti (?) storing tanks of water covered with several inches of salad oil to fool secured parties. Buffett correctly viewed it as an isolated, if very large fraud but not a systemic failure.