Visa (V)

Visa (V) is a transactions processing company - it sounds complicated, but it's really pretty basic to understand.  V takes a percentage of every transaction that it processes over its network.  So, you go to the store to buy a pack of smokes (hopefully not) and swipe with your Visa card, and V takes a cut.  Its main competitor is MasterCard (MA), followed by American Express and Discovery.

V and MA generally trade pretty equally.  V is the more established player, and MA has the higher growth potential.  Both are, in my opinion, a play on the transition from primarily cash-based to card-based societies overseas (assuming you are reading this in the US).  Nobody, assuming everybody is exactly like me, wants to procure cash, carry it around, count it out when paying, and keep loose change.  Pain. In. The. Rump.  There are specific purposes where cash is appropriate, but 90% of one's daily transactions are just better without cash.

V has several avenues of growth that it is pursuing, most of which intend to increase the user experience for digital purchases (i.e., internet purchases).  Of course!  I hate when I have to walk across the room to get my wallet every time I want to make a purchase on Amazon!

V is a steady grower, and very few macro- or micro-economic events tend to influence volatility in this equity.  As such, V maintains generally higher PE and PEG ratios.  Rightfully so, it is pretty close to a "sleep at night" growth position.

Common Cents Take: V has great long-term growth prospects and is a low volatility name.  This is one of the easiest positions to own in the Common Cents portfolio.  However, its low volatility limits the opportunities to increase portfolio returns through short-term trading.