I watch alot of finance youtubers, I really like your portfolio alot and think it has a great chance of outperformance over VOO. Alot of other youtubers either have nothing but low evaluated yield traps, or the most expensive, unprofitable tech companies. You got a solid bunch of companies in that portfolio.
@mattderron
Жыл бұрын
Thanks I appreciate that! Time will tell on outperformance, but I like the group of companies I have so far
@David-kg5dk
4 ай бұрын
Visa and Mastercard Client Incentives have grown faster than Revenue for 15 years. They are now at 36% of revenue for Mastercard And at 27% of revenue for Visa. In 2010 Client Incentives were: 27% of Revenue for Mastercard 16% of Revenue for Visa Guidance for both companies has been that this trend will continue. Visa & Mastercard are not as rock solid going into the future as most people make it out to be.
@mattderron
4 ай бұрын
Sure, client incentives are a tool…just like lowering prices to keep business, etc. but with 97% profit margin and 45% FCF margin, I’ll gladly take “rising client incentives” as one of my risks to watch.
@JacquesTreehorn
7 ай бұрын
Visa is a great stock Great company. Strong business. It does not shoot up like crazy though. You will not lose money with it and it does pay a small dividend. With Visa, you buy it and never sell it.
@andreiz1574
Жыл бұрын
Another solid analysis, great job Matt! I started my position in V on their most recent earnings day, and they have been the best performer over the past few weeks. I'm also planning to add more positions in V/MA whenever there is a dip, aiming for around 10% of my total portfolio.
@mattderron
Жыл бұрын
Very nice!
@killersajmon
Жыл бұрын
How can Matt not have more subscribers?!? Great analysis, thanks! Did not find one on Microsoft on your channel. How come?
@mattderron
Жыл бұрын
Thanks! Just haven't gotten around to MSFT yet, but will
@extramild1
Жыл бұрын
I have had about 10% of my portfolio in Visa for many years. I overpaid for it back in the day and if I was to buy it today I would still overpay for the stock. Occasionally there is a story in the news about what Congress is going to cut their margins or some technology company will ruin the business. But it never comes to pass. It is a gem hidden in plain sight. Buy the stock, do nothing, and forget about it. It will rise over time and you can sleep like a baby at night - end of story.
@brianh9014
Жыл бұрын
Right, it also has a very good div growth rate. Need to buy more. 😊
@dynamitejmt1
Жыл бұрын
Already love this channel
@HerrLT
Жыл бұрын
Keep up the great work! Your sincere no-fluff delivery is so refreshing. I’m in Amex but not Visa; both a great choices.
@mattderron
Жыл бұрын
Thank you!
@idreeselane9542
Жыл бұрын
I bought Starbucks and visa myself a month ago very good company
@Fitness_Animal-rt1ki
Жыл бұрын
things you already know great camera Nice stock picks nice inside
@adrianb4638
Жыл бұрын
A well put together and thought out video. Thanks and I subscribed
@mattderron
Жыл бұрын
Thank you!
@1DansBlues
Жыл бұрын
I’ve been owning Visa since 2019. So I have nice Capital appreciation in it. Thanks for your analysis in Visa it’s nice to get your opinion on it. I heard a stat that 61% are living paycheck to paycheck and that credit debt is at an all time high, that would seem to bode well for visa. And well since you mentioned it. 🙄🙄🙄Seems every time Govt gets involved with things, the price goes up. Like the Dept of Education, ACA and now trying to curtail inflation. The cost of tuition, healthcare and the cost of living has sky Rocketed. Once again you continue to impress me. Your content is excellent and enjoyable. You rock.
@mattderron
Жыл бұрын
That's awesome, definitely some good gains - and that includes the big 2020 dip so likely even better going forward. I don't think the new Durbin thing will get a lot of support but you never know. Inflation protected revenues are so nice though! I appreciate your kind words, much respect 🙂
@michaelsaenz380
Жыл бұрын
Thanks for showing your calculations for making the buy. As a follow up I have to ask, do you do the same calculation to decide when to sell? How do you decide when to sell a winner in particular? Selling losers is easier i.e. stop losses or narrative change.
@mattderron
Жыл бұрын
It's a great question and up to this point I haven't had a consistent method for doing that. It's mostly "something has changed that I don't love or goes against my original thesis." That obviously can apply to winners or losers, but this is something I need to formalize better for sure.
@michaelsaenz380
Жыл бұрын
@@mattderron thanks for the reply & insight! I find it much harder to find when to sell than to buy as well. Sometimes a winner may feel over valued so it's hard to hold on to realize it's potential
@johnmonk3381
Жыл бұрын
@@michaelsaenz380Why would you sell a great business that's being fairly valued by the market at this point?? Because the investment is either better than cash OR it is not. Period. Because if you sold, what else would you with the cash, either hold it in cash OR put it into something else, so the question you really have is have you found a better investment than visa
@michaelsaenz380
Жыл бұрын
@@johnmonk3381 That is not the problem. Let's say there is a stock at $80 and your model says it should be valued at $120. Undervalued! Easy buy. What do you do if the stock hits say $160? Is it still undervalued? Let's say you hold. Now the stock is $57. This stock is PayPal.
@trevor2671
Жыл бұрын
Another really well done video! Visa is a powerhouse and shareholder friendly.
@mattderron
Жыл бұрын
Thank you, I appreciate it! Couldn't agree more
@AlcatrazMeow
Жыл бұрын
Hey Matt, what do you think about Microsoft? Also, could you maybe do a video for new guys in the market? Meaning like myself. If you were to start in the stock market today, what stocks will you go for at what prices? What will be your instant buys?
@mattderron
Жыл бұрын
Microsoft is a great company with a long history of outperformance, but I haven’t personally dig into them in a long time. I have them on my list though. In terms of stocks for newer folks, it really depends because there are so many variables like your goals, risk tolerance, time horizon, etc. I usually just tell folks to focus on a core index fund (VOO or SCHD if you want to be dividend focused) and then start dabbling in individual stocks with companies you have a personal interest in. That way you’re building wealth with your core holding and learning about companies you like slowly over time. Sorry that’s not usually a popular answer but in general I think that works best
@epluribusmark
Жыл бұрын
I have a position in Mastercard. I've thought about adding Visa since i think it's also a great company. Only thing stopping me is the Mastercard position. Going back and forth between just adding more to MA vs adding a new position in V
@mattderron
Жыл бұрын
They are both great - I'm guessing either decision you make will work out fine. Nothing wrong with just adding to MA they are a great company / stock as well. Very similar to all the points I had in this video about Visa.
@johnmonk3381
Жыл бұрын
Sell some of the Mastercard and buy visa! No brainer here
@aaa4181
Жыл бұрын
I bought V at $180 and sold for $200, oof. What do you like more AXP or V? MA and V seem to run laps around AXP. I still have AXP, $150 cost basis.
@mattderron
Жыл бұрын
I still like (and now hold) both. Towards the end of this video I talk about why. Amex is really a different business than Visa is and competes against different companies IMO
@kurniawanms2
Жыл бұрын
Bought $V at around $125 and never look back. Bought $MA at around $250 and never look back
@mattderron
Жыл бұрын
Nice!
@eliezeroliveira6105
Жыл бұрын
Loving your content. Can you do one about QCOM?
@mattderron
Жыл бұрын
Thank you! I can put it on the list - might be a while though
@davidlambert5255
Жыл бұрын
Nice i have these on my watch list. Ill wait for the Derron Dip before i jump in. ....lol
@mattderron
Жыл бұрын
if the "Derron Dip" is stocks going down after I praise and buy them - then that's my new favorite phrase of 2023 😂
@davidlambert5255
Жыл бұрын
Awesome...love the channel keep up the good work
@pavXX
Жыл бұрын
Yep, own both V and MA.
@mattderron
Жыл бұрын
Both are just beasts at generating cash
@ranbandz7566
11 ай бұрын
You don’t think American Expres is a competitor?
@mattderron
11 ай бұрын
I talked about it in the video - Amex isn't as direct a competitor because they are also an issuer of their own cards that take the credit risk for them. V and MA do not, they are technology platforms for payment processing.
@johnmcquaid7524
5 ай бұрын
Another awesome video! Your comment section discussions were also helpful. Very interesting. V is currently $270 - 19APR2024
@mattderron
5 ай бұрын
Visa is one of my favorite companies easily
@ryder520
Жыл бұрын
Could you evaluate Sofi or Hood?
@mattderron
Жыл бұрын
I'll put them on the list, but the list is getting long. In general with companies like Sofi or Hood, I don't usually pay much attention to them until they're profitable. Both have negative earnings / cash flow at this point. I know there are a lot of folks who love them (especially Sofi) but my general strategy is to focus on profitable companies. I will definitely add them to the list though since they're frequently asked about
@brianh9014
Жыл бұрын
Dude, a bit late to the game on sbux though I believe is now at a good buy point. Yes V is a no brainer, liked better at and below 220. will continue ro dca. 😊
@johnmonk3381
Жыл бұрын
Might never get there... but who knows! You might get lucky
@charlesbarrett6565
Жыл бұрын
Visa is a great company 👌
@Dochop11
Жыл бұрын
Hey Matt. Love the content. Just a wondering your thoughts on the Credit Card competition act that they are looking to vote on this year, and if you think it will hurt a stock like Visa?
@mattderron
Жыл бұрын
Thank you! I touched on it a little bit in this video on the section about Govt risks (13:07 or so in the video). But let me know if there was something more specific you were looking for
@johnmonk3381
Жыл бұрын
Nothing new. Even congressmen themselves also own visa stock. If even the government now wants to "regulate" you, then you can be pretty damn sure that business is almost a monopoly and generates a ton of cash. Remember the same thing happened to microsoft back in the late 90s and early 2000s, look at how msft has performed since then! Owning msft has beaten the hell out of the sp500 over the last 2 decades! Regulation here is a signal of strength not weakness, don't confuse the two. Look, the government doesn't seem to want to regulate paypal, does it? And look at how paypal has performed without that regulation anyways. Plunged over 80%! Go and figure that one out
@jrocca42
Жыл бұрын
I just opened a position 2 days ago! Mastercard as well.
@mattderron
Жыл бұрын
Nice!
@penghandie
Жыл бұрын
Great video! Wonder if you can share how you build your spreadsheet tool with Finsheet? If people want to build something similar but with certain other tweaks ( for example, I like to look at the historical return on equity), how would one go about doing that? Many thanks!
@mattderron
Жыл бұрын
Thank you! I actually don't use Finsheet for my spreadsheets anymore. I'm pulling basic data from finviz instead. It just makes the sheets easier to share without confusion or security concerns. I do share the sheets for free on my patreon page though so people can make a copy of them and change them however they want
@penghandie
Жыл бұрын
@@mattderronthanks so much! Will check it out!
@idreeselane9542
Жыл бұрын
Look into waste management as well another good one
@mattderron
Жыл бұрын
I recently sold my WM position actually (I did a video on it). Still a great company but I had questions about the FCF being pushed down by the sustainability growth investments and not seeing benefit until 2025. I do like their business in general though, just wanted to go a different direction.
@amysteinmueller6969
Жыл бұрын
Thanks!
@mattderron
Жыл бұрын
Much appreciated, thank you!
@kevintorgrimson8529
Жыл бұрын
V is a free cash flow machine!
@mattderron
Жыл бұрын
That it is!
@jimjackson4256
Жыл бұрын
Surely there is something which isn’t so well analyzed .
@furtsmagee1513
5 ай бұрын
High quality video
@mattderron
5 ай бұрын
Thanks!
@HumanNipple
Жыл бұрын
Great choice picking up Visa. I own a significant amount of them and it's never done me wrong.
@mattinterweb
Жыл бұрын
Interesting. What software/site are you using to track your portfolio?
@mattderron
Жыл бұрын
It's part of the "Portfolio Performance" tools that Schwab offers, one of the main reasons I consolidated accounts there
@evadeanu1
Жыл бұрын
Ample analysis. Thanks
@mattderron
Жыл бұрын
Thanks, I appreciate it!
@h.b.9694
Жыл бұрын
Nice shirt! ;)
@mattderron
Жыл бұрын
Thanks, I’ve noticed that I wear it a lot in my videos. I need more shirts to do this lol
@mrmo3379
Жыл бұрын
I bought Visa back in 2014 and it has been a great investment but I recently sold as it is getting a bit expensive
@johnmonk3381
Жыл бұрын
The current price only reflects the quality of the business and not expensive at all. It's hardly selling at a level that nvda is! You are actually paying for quality and not other people's exuberance
@MrDevonMize
11 ай бұрын
It's still cheap but if you made money; very nice.
@barrysharer3401
Жыл бұрын
Great analysis. Why V vs MA?
@mattderron
Жыл бұрын
I talked about it a bit towards the end of the video. But basically Visa has slightly better margins and less debt, and I just personally like their cards better (because I use them). But I specifically said I can't fault anyone for choosing MA, they are great and their stock has outperformed V actually.
@johnmonk3381
Жыл бұрын
V has a lower pe ratio but it has better margins, profitability and market share than mastercard. So it's a no brainer to go with visa vs mastercard
@bottics2569
3 ай бұрын
@@johnmonk3381 Mastercard has faster growth and possible margin expansion
@ritjai5482
Жыл бұрын
I was about to buy Visa after your video but I saw it's down today and waiting a bit to go more down to buy it. Any reason why it's down rn?
@mattderron
Жыл бұрын
I don't know for sure, but the story about the potential exchange of B shares came out late yesterday. Could just be normal market movements. I almost bought it today too since it was down like 3%, but ended up adding to AAPL instead since I was planning to do that already. Still love Visa though and want to increase my allocation to it
@johnmonk3381
Жыл бұрын
Markets are worried the big boys will start dumping their huge stakes in visa as their limited class b shares gets converted into more trade-able form like those currently traded on the stock exchange. The thing here is: do you buy a business due to their excellent profit generating potential or how often people sell or buy its shares?
@willydear4906
Жыл бұрын
P/E ratio, peg ratio, debt/eq ratio all to high for my tastes. Just too much overvalued.
@mattderron
Жыл бұрын
Genuine question - do you mean too high for the type of stocks you usually are interested in? Or too high for Visa? I ask because I talked about in the video that Visa's p/e ratio and p / fcf is actually in a relatively fair valued number based on their latest 5-10 year history since they tend to trade at higher multiples. But it's definitely higher than what people traditionally think of as "fair valued". Curious to understand your perspective
@willydear4906
Жыл бұрын
@@mattderron I look for a p/e ratio less than 15, peg ratio under 1 ( not as important to me as pe ratio), debt ratio under .5. Fcf is another one I look at. As an older investor I don't have the years to make up from mistakes so I'm conservative. I don't think that visa or Mastercard are bad investments at all.
@mattderron
Жыл бұрын
@willydear4906 makes sense, thanks for the info, I always like learning other people’s perspectives
@THirayama
4 ай бұрын
How's your Starbucks now?
@holyhandgrenadeofantioch2019
Жыл бұрын
For the algorithm
@guyredares
Жыл бұрын
yes it's safe but it's also dead money, i would rather just buy SPY
@mattderron
Жыл бұрын
What do you mean by “dead money”? Can you explain?
@guyredares
Жыл бұрын
@@mattderron yes, from 2020 to 2023 it basically did nothing
@mattderron
Жыл бұрын
oh I see, definitely hasn't risen like some - but what has happened over the last 3 years is the price multiples (p/e and p/cf) have come back down to more reasonable levels from 2020. That's one of the reasons I was ok buying now
@guyredares
Жыл бұрын
@@mattderronman it even pays half the dividend SPY does
@travis10466ny
Жыл бұрын
$AMT
@Gunieapower33
Жыл бұрын
Visa is a monster
@mattderron
Жыл бұрын
100% agree, their business stats are just insane
@JonyCcc
Жыл бұрын
i had visa for a long time 😂😂 but only 5% thx for share
@monsterenergyaxe
Жыл бұрын
Thoughts on TSLY and yield max funds? I get about $500 monthly from tsly and dropping it into schd in my ira.
@mattderron
Жыл бұрын
I haven’t dug into them a lot but I understand the general idea (selling options to generate income). My main concerns with it are their relatively short history (hard to see how they’ve performed in different market times), high fees (I think I saw .99% expense ratio) and obviously the trust that you have to have in whoever is doing the option selling. In general I do believe selling options is a good income generator though, I just don’t know enough about them specifically
@Purplebass
Жыл бұрын
Visa is a great company but valuation matters a lot. You overpayed.
@mattderron
Жыл бұрын
Based on what?
@mattderron
Жыл бұрын
Yeah that's why I asked - DCF models are just one way to find a fair value price and there are many stocks that almost never hit "fair value" in those models. Always curious what method people are using when they claim others "overpaid"
@morten170
Жыл бұрын
If The Stock have doubled in 6-8 years then it dont matter. If he holds it for 20 years. Then it really dont matter.
@johnmonk3381
Жыл бұрын
Price is what you pay, value is what you get. Unfortunately, for a stock like visa, it doesn't stay "cheap" for very long, which means you are very likely to have to get it at a premium most of the time. That said, visa has underperformed the broader market for the past few years, but the fundamentals will eventually catch up and this thing will start catapulting much higher so you risk missing out when you keep trying to wait for it to go down enough to what you consider "basement" level, but at what price point will you consider it to be a bargain enough to pull the trigger, because even when it did get there, you will always want it to keep "going lower" in an effort to pick the bottom but you get so caught up in the game and lose big when it eventually turns around and goes much higher and you'll end up kicking yourself for being so petty and haggling over a few bucks for a great merchandise like an old lady in a fish market!
@furtsmagee1513
5 ай бұрын
Looks like you were horribly wrong!!! Lmao! Try again
@extramild1
Жыл бұрын
Mastercard is basically the same story except has a more international business. I rather dislike the smell of wokeness that Mastercard generates but not enough not to own shares of the business.
@geemboombaa
10 ай бұрын
Appreciate the analysis but way too much analysis for just one stock. I don’t think u need to over analyze. Is there a way u can consider short videos less than 2 to 3 minutes please
@mattderron
10 ай бұрын
Genuine question - how can someone actually analyze a stock in 2-3 min? At that point what is being analyzed?
Пікірлер: 116