Credit Card Equities

Discussion in 'Stock Market Forum' started by ScooterBrandon, Jul 26, 2015.

  1. ScooterBrandon

    ScooterBrandon Senior Investor

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    Does anyone invest in companies like Visa, Mastercard or Amex? I don't directly but I have some exposure via funds (not much though.)
    Do you guys take positions directly with the stock or use funds?
    are their any smaller companies (discover perhaps) that offer better growth or value prospects?
     
  2. Onionman

    Onionman Senior Investor

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    In the past I had exposure to Visa and Amex. At the time, Amex was viewed as the higher quality option based on delinquency perceptions (i.e. the assumption that it's harder to get an Amex card than a Visa). But I haven't really dabbled in the space for a long time. Plus, Visa was being lumped in with Tech and a lot of Tech fund managers were following it and putting it into their funds, so I didn't know how to play it/allocate it.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Visa is an interesting company but it is ridiculously expensive in my opinion. So while I like the company and business model, I don't think it's worth the price tag. I haven't looked too closely at Amex but I guess it pretty much falls into the same category as the business model is essentially the same. Amex looks a lot more affordable though.
     
  4. Sunflogun

    Sunflogun Well-Known Member

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    Credit card companies seem to be a solid investment, let's face it, those guys are never bankrupting. Like you say crimsong, it has to be expensive though, so eventually it will be hard to get return on them.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I owned V and MA in the past - made lots of money there. They are both a little expensive these days.

    I did just buy a little Cap1 on its recent pullback.
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    What were your reasons for selling? Did you just want to realize some of the profit or was it more to do with their high valuation?
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    It wasn't that long ago - I was at a couple of points late last year and earlier this year when I was trimming my exposure to some of the high-beta stocks, and taking profits on those that had become not so cheap anymore.
     

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