Group 1: Visa - Visa operates one of the largest electronic payment networks globally, facilitating transactions for individuals and businesses across 200 countries and territories [3][4] - In the 2024 fiscal year, Visa processed 234 billion transactions, averaging 829 million transactions per day, showcasing its extensive network effect and competitive advantage [4] - Visa's asset-light business model allows it to earn fees from processing and network services, resulting in consistent double-digit revenue growth and strong free cash flow [5] - Management views stablecoins as an opportunity rather than a threat, aiming to integrate them into its payments ecosystem to enhance cross-border transactions [6] - Visa is considered a solid blue-chip stock due to its strong network effects, stable cash flow, and resilience in growing with the global economy [7] Group 2: Progressive - Progressive is one of the largest auto insurers in the U.S., also providing home, renters, and commercial insurance [8] - The company excels in risk management through data analytics, particularly with its usage-based insurance product, SnapShot [9] - Progressive's combined ratio has averaged 91.6% since 2002, indicating profitable underwriting well below the industry average of around 100% [10] - The company has demonstrated steady premium growth and underwriting profitability, solidifying its status as a blue-chip stock [11] Group 3: CME Group - CME Group operates the world's largest derivatives exchange, offering futures and options across various asset classes [12] - The company benefits from robust network effects and deep liquidity pools, essential for effective risk management, especially during market stress [13] - CME has achieved all-time quarterly volume records in key products, indicating strong demand and resilience in revenue from clearing and transaction fees [13][14] - The company is well-positioned to benefit from increased hedging demand and the ongoing electronification of trading amid global uncertainty [14] Group 4: Chubb - Chubb is the world's largest publicly traded property and casualty insurer, underwriting various insurance policies across multiple lines [15] - The company's scale, diversification, and underwriting expertise contribute to consistent profitability and strong cash flow generation [16] - Chubb has a long history of dividend growth, rewarding shareholders for 32 consecutive years, and is positioned to capitalize on rising global insurance demand [16][17]