Visa stock has recently been hit after an investigation by the Justice Department in Visa’s practices to find whether the company uses anticompetitive practices or not. Visa doesn’t think they are violating any rules, but they are cooperating with the department of Justice. Visa has been around for a long time and has had regulatory concerns in the past. So we might see some fear in the short and medium term, but I definitely see Visa coming out of this no problem and remaining the leader in the space.
With a preponderant share in the fast growing digital payments market, growing revenues, good internal management, I don't doubt the future performance of the company for a second. I have never gone to a place that doesn't accept VISA. You can use a VISA card pretty much anywhere.
Although Visa faces headwinds from the rona in the near term, the long-term outlook remains strong. And honestly even if the company chooses to not reinvest in itself i'm fine with that. The company can then pay out huge dividends. Visa is great because its an intermediary. It doesn't take on the liability as a lender and it makes money as long as people are using their payment network.
And also, for what it's worth, it's good to note that Buffet owns more than a few shares of Visa. but Buffett is mainly betting on the payments industry seeing as he also owns Mastercard stock and an even larger position in American Express.
