Core Insights - Visa Inc. is enhancing its presence in Europe as Beyond by RS2 becomes a Principal Issuing Member, allowing it to issue Visa cards directly and offer comprehensive card programs, aligning with Visa's goal of deeper ecosystem integration [1][8] Group 1: Visa and Beyond by RS2 Collaboration - Beyond by RS2 transitions from a service provider to a full-fledged payments powerhouse, offering a wide range of flexible and scalable card solutions including debit, credit, prepaid, and corporate cards in both physical and digital formats [2][8] - The collaboration allows for improved fraud prevention, compliance, customer support, and faster market entry across the European Union and the European Economic Area [2] - This partnership expands Visa's presence in Europe's issuer ecosystem and represents a crucial step for RS2 in scaling its innovative payment products, indicating a more competitive card-issuing landscape [3][4] Group 2: Competitive Landscape - Competitors such as Mastercard and American Express are also enhancing their capabilities; Mastercard reported a 13% year-over-year increase in net revenues for the first nine months of 2025, while American Express saw a 9% rise in total revenues during the same period [5][6] - Visa's stock performance has shown a 4.5% increase over the past year, contrasting with a 12.1% decline in the industry [7] Group 3: Financial Estimates and Valuation - Visa trades at a forward price-to-earnings ratio of 24.98, above the industry average of 20.25, and carries a Value Score of D [10] - The Zacks Consensus Estimate for Visa's fiscal 2026 earnings suggests an 11.7% increase from the previous year, with year-over-year growth estimates of 14.18% for the current quarter and 11.68% for the current year [11][12]

Core Insights - American Express and Coca-Cola are significant holdings in Berkshire Hathaway's public equity portfolio, with American Express being the second-largest holding and Coca-Cola the fourth-largest [1]. Group 1: Performance Comparison - Over the last decade, American Express has delivered a total return of 228%, significantly outperforming Coca-Cola's 55% and the S&P 500's 106% [4]. - Coca-Cola's stock price has increased by only 35% over the last decade when excluding dividends [4]. Group 2: Business Model and Strategy - American Express operates as both a card issuer and payment processor, which is seen as a superior business model compared to Visa and Mastercard, which only act as payment processors [5]. - The company has a strong risk management track record, evidenced by its low net write-off rate [5]. - American Express offers high annual fees but compensates with generous rewards, spending about twice as much on cardholder rewards as it collects in fees, while making up for this through high merchant processing fees [6]. Group 3: Future Outlook - American Express is positioned for long-term growth due to its loyal customer base [8]. - Coca-Cola is gradually reducing its reliance on sugary soda, indicating a shift in its business strategy [8]. - Both companies are known for returning substantial cash to shareholders, including Berkshire Hathaway [8].