Visa is a durable payment network that takes a small cut of huge volume without credit risk and should survive disruption, but at 33 to 34 times earnings against 10% revenue growth its gains come from multiple expansion, so it is too expensive to buy today; he would buy it at a discount near 15 times earnings.

Visa. Why would you want to own this stock and why should this stock probably be on your watchlist for opportunities, but not necessarily for buying today?

Well, it is highly regarded by the market. That's why I don't own it personally, neither it nor a Mastercard. It is a payment fees gateway. They get a small percentage of a huge transaction volume without taking on credit risk.

I love this company. In the event of a collapse, spending slows down, but people continue to use their cards. The business is profitable. They don't really need liquidity. They can continue.

And yes, I know cryptocurrency enthusiasts will say: But hey, but hey, there are all these other things . I believe their competitive advantage—and I know you know I hate talking about competitive advantages —is that their ability to survive technological disruption is far greater than some people realize.

I realize there are risks. There are regulations. There is pressure on fees. There are all kinds of new products. I believe they are long-term survivors, and if I could get them at a discounted price, they would be at the top of my list.

Yes, the stock is trading at approximately 33 to 34 times earnings at the time of our recording . I agree that this is a rather high price when you consider the fact that they have achieved revenue growth at a compound annual rate of 10%.

Again , it's another one of those companies, and there are many of them. We'll talk about two of them today. Their stock market performance is amazing, but when you actually look at what's driving that performance, it's actually the expansion of multiples and not revenue growth or even margin expansion.

Simply put, the market loves the stock more and more.

So, on the side of volatility, I am very optimistic about the idea that stablecoins will be a big part of the future. I think that will happen in the background. Most likely, you won't own a cryptocurrency wallet or anything like that .

Simply put, instead of money moving from point "A" to point " B" via credit card networks , it will move via stablecoin networks. What has been interesting over the past two years in this regard is that innovation has happened more slowly than I thought was possible, so that companies like Visa and Mastercard could play a similar role to the one they play today in that future.

If you actually look at the fees they charge for their work, most of it goes to the banks. Most , as you know, a large portion of the other fees goes to the processing company, i.e., companies like Square or Stripe around the world.

If you exclude these two fees, very little will be left for Visa. But they do a lot of work with this small graphics structure. Well, this part might remain, and you simply do without banks, so that suddenly the transaction fee becomes 1% instead of 3%.

This may be a glimpse of what the future will look like, or perhaps nothing will change, but I think you are right that Visa probably has a good future either way .

If you can get it for 15 times the profit instead of 34 times, that's a very good deal . One of the historical lessons from the financial services sector over time is that established companies can use and leverage technology alongside innovative companies.

So, yes, their profit margins may come under some pressure, but their expenses may also decrease thanks to these same forces, by integrating technology to reduce their costs. The parent company usually profits from financial services.

I think this has been the case with payment systems for a long time.

Yes, it will be very interesting to see how things develop, but it is another stock that I do not own yet and have never owned, partly because it has always been too expensive .

Therefore, 2% goes to the banks and Visa.