Visa (NYSE: V) is part-owner of a oligarchy in the world of credit cards and credit-card transactions. At this point in history, nobody is going to upset the “Big Four” of credit cards. Visa is already expanding into other financial services, but the fact that it has a lock on a giant piece of the credit-card market is what will allow it to remain a premier investment.
The ugly truth is the human race is built on credit. Americans alone have started to lever up again after several years of paying down debt. The American consumer, and consumers globally, will just keep charging purchases . . . forever.
I’ll give you one I disagree with: LinkedIn (NYSE: LNKD), which I believe is a platform in search of a business model. The stock trades at 100 times earnings, on only $2.2 billion in total revenue for 2014. That’s just crazy and I say you should stay far away from it.
This article is brought to you courtesy of Lawrence Meyers from Wyatt Investment Research.