Mastercard: Valuation Risk Continues To Rise

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Payments processing, i.e., credit card networks, might be young in their public history, but they are rich in generating wealth for owners.  Since its IPO in 2006, a $10,000 investment in Mastercard (MA) would be worth over $600k, and that doesn't include dividends that have been paid out.

Mastercard has ridden the wave of the transition from a society that largely uses cash and checks for transactions to one where more purchases are done with a swipe.  Mastercard's existing network would take years for an upstart to build out which protects the business and keeps it earning high margins.

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