Modern monopolies: MA &V

It is a shame my posts on these topics over many years are lost. In any case, here is a simple graph that shows the power of buying solid companies

The starting data is my last purchase of MA, comparing with SPY and QQQ.


A shame indeed. Much needed context:

Author: Kingran
Subject: Modern Monopolies 2
Date: 5/6/2017

Visa and Mastercard. The use of credit cards are only going to grow worldwide. This is just a network company, with no credit risk, similar operating margin, similar payout ratio and both shrinking float (shares through buyback) and both increasing dividend yields. There are newer payment solutions coming out. However, I view them as niche and V & MA will eventually play in those spaces too, because of their dominating presence and both has significant worldwide growth ahead. The PE’s are around 30. In this market profitable companies with slid moat, 10% growth, are not going to be cheap.

Good call!


Thanks for finding this!!!