Stock Investing Idea: Visa (V) and MasterCard (MA)
In the current stock market climate, it can be difficult to decide which stocks to choose. You may know that in the long run the stock market gains, and that if you pick solid value stocks now, you could cash in later. But the truth is that not all stocks are going to recover from the current economic situation. And that means you need to be extra careful about your choices.
One stock investing idea is to consider Visa (V) and MasterCard (MA). These are companies that specialize in making money when other people spend it. The Street provides an overview of these card companies:
These are not credit card companies, in that they don’t issue cards, maintain consumer relationships or make loans. They are purely payment networks — basically tech companies. Their only significant mission in life is to provide the electronic pipeline for a payment to travel between the merchant point of sale and the issuing bank. Therefore, MasterCard and Visa are in the ideal position to take advantage of the secular shift from paper to electronic forms of payment, which continues unabated despite U.S. economic weakness.
So, even as the banks that issue the credit cards with the well-known logos suffer losses, Visa and MasterCard are expected to continue to do well. Or at least well enough. And they are venerable companies that have become virtually indispensable to the way the American economy functions. Additionally, both of these companies have a wide global presence. Who uses travelers’ checks anymore? Instead, people just whip out the Visa or MasterCard.
It just might be that V or MA could make a valuable addition to your investment portfolio.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: stock market, stock investing, investing blog, V,
economy, investment portfolio, MA
