It's hard predicting what a company might earn in the future. There's a lot that could change. However there are a few companies out there that should do well no matter what happens to the economy. Mastercard and Visa are some of these companies. They both benefit from the declining use of cash. As users buy more online and payments become electronic both these companies will benefit. We are still at the early stages of this growth 83.7% of transactions globally are still cash.
Source: Mastercard investor day
Source: Mastercard investor day
With an outlook like that it's no surprise that these companies have outperformed the market.
Source: Mastercard investor day
Decisive has a long position in Visa and has no position in Mastercard. The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.
