The Lemon Fool

Does anyone else have Visa on their watchlist, or Mastercard?

The former has gross margins in the high 60%s. Return on capital employed is pretty strong as well. The network gives a fairly good 'moat' in many respects and they still have growth options in markets such as Europe where many transactions are still cash based. Dividend growth potential pretty strong with a low payout ratio and sub 1% dividend yield.

Best wishes

Mark.

Yes I own both,
Great companies, visa held within Fundsmith and Buffett has some too I believe
I have a couple of percent of each in the portfolio, as Buffett mentioned in the last Berkshire meeting, they didn’t buy more as too many clever people are thinking hard of how they can distrupt the payment industry
Happy to hold 5% of portfolio for now,

Cheers

Everywhere seems ripe for disruption these days!

I did read Visa has 3 billion cards issued, which hopefully will give some sort of protection. It's the sort of company that is never cheap.

Best wishes

Mark.