Mastercard Is A Buy Here Only For Long Term Investors

Summary:

  • Mastercard has outperformed the SP500 since 2018, offering a 20% CAGR, making it ideal for long-term investors, despite its high PE ratio.
  • The company’s strong market position, global reach, and high-quality growth initiatives ensure sustained revenue and EPS growth with low margin volatility.
  • Mastercard’s management excels in leveraging its payment network for new business lines and expanding in developing regions, boosting long-term growth prospects.
  • Despite potential risks like economic downturns or geopolitical events, Mastercard’s robust financials and strategic execution make it a solid investment for a diversified portfolio.
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Mastercard (NYSE:MA) shares have been an absolute success for long-term investors, and I believe they will continue to do so. Since 2018, the stock has crushed the SP500 with more than 260% total returns, well above the general index with just around 150%. This translates


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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