Mastercard: Valuation Risk Continues To Rise

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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