Core Viewpoint - Berkshire Hathaway's asset composition has shifted, with controlled companies now exceeding public equity holdings, and cash and marketable securities surpassing stock investments [1] Company Overview - American Express remains a significant holding for Berkshire Hathaway, constituting 14.5% of its equity portfolio, second only to Apple [2] - The company has consistently outperformed the market over the long term, although it has underperformed the S&P 500 and Nasdaq Composite year to date [2] Business Model - American Express operates a unique business model compared to Visa and Mastercard, issuing its own cards and bearing the risk of defaults [4][7] - The company targets affluent customers, which allows for higher fees and greater spending potential, despite the inherent risks [7][8] Financial Performance - American Express has shown steady revenue and earnings growth, with a notable increase post-pandemic as it appeals to younger demographics [9] - The stock has declined 22.9% from its all-time high, presenting a potential buying opportunity for long-term investors [13] Valuation Metrics - The current price-to-earnings (P/E) ratio for American Express is 17.9, slightly below its five-year average of 18.4, indicating it may be undervalued [13] - The price-to-free cash flow ratio stands at 14.8, further suggesting that American Express is a good value [13] Share Buybacks - American Express has reduced its share count by 30% over the last decade, enhancing earnings per share (EPS) growth through buybacks [15][17] - The company has a history of significant dividend increases, with a recent 17% hike in its quarterly payout [17] Investment Thesis - American Express exemplifies quality over quantity in the payment processing sector, with affluent customers leading to higher average spending [19] - The stock is considered a strong buy amid broader market sell-offs, offering both value and passive income potential [20]

Core Viewpoint - Apple is currently facing challenges due to a 145% tariff on goods from China, which could impact its production and profitability, as 80% of its manufacturing is based in China [1][2] Group 1: Financial Performance - In fiscal 2024, Apple generated $391 billion in revenue, with 75% from product sales and 25% from services, which grew by 13% in the latest fiscal year [3] - The services division is becoming a significant revenue driver for Apple, highlighting diversification in its business model [2][3] Group 2: Financial Services Expansion - Apple has made significant strides in financial services, launching Apple Pay in 2014, which is accepted by over 90% of U.S. retailers and has more than 600 million global users [4] - The Apple Card, launched in 2019, has 12 million customers and $20 billion in balances, offering up to 3% cash back with no fees [5] Group 3: Partnerships and Market Position - Major financial institutions like Visa and American Express are vying for partnerships with Apple, indicating the company's strong revenue potential and affluent customer base [6][7] - The competition among issuers to take over the Apple Card program reflects the value that Apple brings to financial services [6][8] Group 4: Stock Valuation and Market Outlook - Apple shares are currently 26% below their peak, with a price-to-earnings ratio of 30.2, which is an improvement from December [9] - Despite the strong business fundamentals, there are concerns about Apple's growth prospects and the impact of tariffs on future performance [10][11]

With an S&P 500 bear market underway, there are plenty of "discounted" stocks to be found. President Donald Trump's tariff strategy could cause inflation to surge, and many experts see the chances of a U.S. recession in 2025 as much higher than they were a few months ago. The general uncertainty of the situation has caused the sharpest market downturn since the 2008 financial crisis.However, there are some excellent businesses that were already trading at attractive valuations before 2025's downturn. Here a ...

Core Viewpoint - The article highlights three Dow Jones Industrial Average stocks that present strong buying opportunities amid a significant market sell-off, emphasizing the historical trend of such downturns being favorable for long-term investors. Group 1: Market Context - The Dow Jones Industrial Average experienced a decline of 4,260 points, equating to a 10.1% drop from April 3 to April 7, indicating a shift into "crash" territory [2] - Historically, significant declines in the Dow have signaled buying opportunities for long-term investors, as resilient businesses tend to recover and grow in value over time [3] Group 2: Visa - Visa is highlighted as a strong investment due to its ability to thrive during economic cycles, benefiting from periods of expansion following downturns [6][7] - In 2023, Visa accounted for $6.445 trillion in credit card network purchase volume in the U.S., significantly outpacing other payment facilitators [8] - Visa has opportunities for growth in underbanked emerging markets, enhancing its long-term growth potential [9] - The stock has retraced as much as 17.6% from its all-time high, presenting an attractive entry point for investors [10] Group 3: Johnson & Johnson - Johnson & Johnson is positioned as a strong buy due to consistent demand for healthcare products, regardless of economic conditions [12] - The company's focus on pharmaceuticals has led to solid operating results, with brand-name drugs offering higher margins and growth potential [13] - The aging population is expected to drive demand for J&J's medical technologies, improving pricing power and margins [14] - J&J holds a AAA credit rating, indicating strong financial stability and ability to manage debt obligations [15] - The company has had only 10 CEOs in 139 years, ensuring continuity in leadership and growth initiatives [16] Group 4: Walt Disney - Walt Disney is recognized for its strong brand and storytelling capabilities, which provide a competitive edge and pricing power [18][19] - The company's direct-to-consumer segment, particularly Disney+, has achieved profitability rapidly, aided by brand strength and pricing strategies [20] - Disney benefits from the nonlinearity of economic cycles, with revenue typically increasing during economic expansions [21] - The stock is currently valued at a sub-14 forward price-to-earnings ratio, representing a 47% discount to its average over the past five years [22]

Core Viewpoint - The increasing prevalence of credit card usage is highlighted, with Mastercard identified as a company poised for significant long-term growth alongside Visa [1]. Company Analysis - Mastercard is recognized as a heavily undervalued company with substantial upside potential, making it an attractive option for long-term growth dividend investors [1]. Investment Strategy - The focus is on long-term compounding through investments in undervalued companies, particularly those that offer dividends, to achieve financial independence [1].

Group 1 - Mastercard is identified as a high-growth compounder stock that has recently become reasonably valued following a sell-off, leading to a Buy rating recommendation [1] - The investment strategy focuses on GARP (growth at a reasonable price) stocks while also exploring opportunities in other areas, with no specified time horizon for investments [2] - The analyst has developed market-beating algorithms using Python to identify attractive investment opportunities and has been investing since 2016, with experience in analysis and news writing [2] Group 2 - The analyst holds a beneficial long position in Mastercard shares through stock ownership, options, or other derivatives, indicating a personal investment interest [3] - The article expresses the analyst's own opinions and is not influenced by compensation from any company mentioned [3]

Core Viewpoint - Mastercard is a leading payment processor that connects buyers and sellers, operating primarily as a financial technology company rather than issuing credit cards directly [2][3] Group 1: Business Overview - In 2024, Mastercard processed $9.8 trillion in transactions, marking an 11% increase from 2023, which resulted in a 12% revenue increase and a 17% earnings advance [3] - The United States is the largest market for Mastercard, processing $793 billion in transactions in Q4 2024, up 9% from Q4 2023, driven by increased card usage and online shopping [4] - Transaction volume in the U.S. grew by 12% year over year in Q4, indicating faster growth in other business lines, particularly international operations [5] Group 2: International Growth - Transaction volume outside the U.S. rose by 13% to nearly $1.8 trillion, highlighting significant growth opportunities in foreign markets [5][6] - Foreign operations present a larger market compared to the U.S., with the potential for higher transaction and conversion fees when cards are used internationally [7] - The best growth opportunities for Mastercard are likely to be found outside the U.S., as the shift toward digital transactions continues [8]

Core Viewpoint - Investing in dividend stocks is a resilient strategy, especially during potential bear markets, as regular payouts can mitigate losses [1] Group 1: Apple - Apple is a significant holding in Berkshire Hathaway's portfolio and is praised for its strong business model and economic moat [3][4] - The company has built customer loyalty and high switching costs, making it difficult for users to transition to competitors [4] - Apple generates substantial revenue and profits, with over 2 billion devices in circulation and more than a billion paid subscriptions [5] - The services segment is the fastest-growing unit, providing multiple long-term growth opportunities [6][7] - Despite a market cap above $3 trillion, Apple has a forward dividend yield of 0.5% and has increased its payout by 92.3% over the past decade, with a conservative cash payout ratio of 14% [8] Group 2: Visa - Visa is the leading payment network globally, with over 4 billion cards in circulation and acceptance by more than 150 million businesses [9] - The company benefits from a network effect, where increased card ownership leads to more businesses accepting Visa, resulting in growing revenue and profits [10] - The trend of cash displacement in favor of cards provides a long-term growth tailwind, especially in markets outside the U.S. [11][12] - Visa has increased its dividends by 391.7% in the past decade, with a forward yield of 0.7% and a cash payout ratio of 22.6%, indicating room for further dividend increases [13]

As of Monday, the Nasdaq Composite index had tumbled more than 11% since the start of the year. The outlook for the economy is worrisome, as trade wars and promised tariffs could lead to disaster for many businesses. But that doesn't mean you should necessarily get out of the market. On the contrary -- this can be an optimal time to score some deals and investments you can hang on to for the long haul.If you've got $5,000 you can afford to invest in the stock market today, three stocks you'll want to consid ...

In 2024, Mastercard processed $9.8 trillion worth of transactions, an 11% increase from 2023. In 2023, transaction value increased 10%. And in 2022, the value of transactions increased 12%. These are impressive growth numbers, and it highlights why investors like Mastercard stock. Mastercard (MA -3.04%) is an industry-leading payment processor that is growing strongly as cash is replaced by cards. The shares have been rising steadily, more than doubling during the past five years. There's just one problem: ...