Monday, August 15, 2011

MasterCard Shareholders

MasterCard Shareholders rejoice every time they see anywhere in the world someone pay with a MasterCard. 887 million users make transactions worth over 540 billion dollars per year with their MasterCard and each time this fall from a few cents to the credit card companies. Only five years, shareholders can purchase shares in the company, founded in 1966. During this time, the stock has already risen by a whopping 610 percent. This year, now even Warren Buffett's Berkshire Hathaway Company invested over 50 million in MasterCard.

The company has only one serious competitor with Visa and therefore a high price of power (duopoly). In an increasingly "cashless" expectant world, the signs continue to grow.

In addition, the stock is attractively valued despite the high rate visually. The Price-Earnings-Growth ratio was below unity (0.9). This means that the predicted percentage profit growth is higher than the PER for the current year.

Conclusion: Buy and leave!

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