Visa & Mastercard Continue To Dominate | Joseph Carlson Ep. 343

Summary

In this episode, Joseph Carlson discusses Apple's upcoming September 12th event, tech stock predictions by Dan Ives, and Visa and MasterCard's plans to raise credit card fees. He also analyzes the economic growth and resilience of companies like Visa, MasterCard, and Apple, and shares his investment strategies focusing on low-risk, high-growth businesses.

Takeaways

• 📅 Apple has sent out invites for their September 12th event, which is expected to be a significant event in the tech industry.
• 📈 Tech stocks are predicted to perform well, with Dan Ives suggesting they will 'rip higher' for the rest of the year.
• 💳 Visa and MasterCard stocks are up, reportedly due to a plan to raise credit card fees, which has been met with controversy.
• 🏦 Joseph Carlson's investment strategy focuses on low-risk, high-growth companies with strong market positions and minimal reliance on high R&D costs.
• 🚧 Companies like Visa and MasterCard are described as 'toll booth' companies, collecting fees from transactions and benefiting from high barriers to entry.
• 💼 Joseph Carlson's portfolio has seen gains, nearing a hundred thousand dollars, due to his focus on companies with dominant market positions and strong brand recognition.
• 📊 Visa and MasterCard have shown exceptional financial performance, with high revenue growth and efficient free cash flow conversion.
• 🛒 The proposed increase in credit card fees by Visa and MasterCard is set to start in October and April, primarily affecting online transactions.
• 📈 Despite potential regulatory challenges and competitive threats, Visa and MasterCard are seen as resilient, with Joseph Carlson maintaining his investment in MasterCard.
• 🍎 Apple's upcoming iPhone 15 event is expected to reveal new models with incremental improvements and a shift to USB-C charging, potentially boosting the company's revenues.

Q & A

What is the main topic of the Joseph Carlson show on this occasion?

The main topic of the show is the upcoming Apple event on September 12th, the performance of tech stocks, and the potential increase in credit card fees by Visa and MasterCard.

What is Dan Ives' prediction regarding tech stocks for the rest of the year?

Dan Ives predicts that tech stocks, in particular, are going to perform well and 'rip higher' for the rest of the year.

Why are Visa and MasterCard in the news according to the Wall Street Journal exclusive report?

Visa and MasterCard are in the news because they are reportedly preparing to raise credit card fees, which has been a contentious issue among retailers and lawmakers.

What is the investing strategy that Joseph Carlson discusses in his portfolio update?

Joseph Carlson discusses an investing strategy that focuses on low-risk, high-growth companies with dominant market positions, high barriers to entry, and strong brand names.

What are the characteristics of the companies Joseph Carlson considers as 'low-risk' investments?

The low-risk companies, according to Carlson, are those with dominant market positions, high barriers to entry, deeply entrenched brand names, cash-rich balance sheets, organic revenue growth, strong pricing power, and minimal reliance on high research and development costs.

What is the term 'tollbooth' used to describe in the context of companies like Visa and MasterCard?

In the context of companies like Visa and MasterCard, 'tollbooth' describes a business model where the company collects fees for providing a service that is essential or hard to avoid, similar to a toll collected on a road.

How does Joseph Carlson view the potential impact of Visa and MasterCard raising their fees?

Carlson views the potential fee increase as a positive for Visa and MasterCard, indicating that they are not overly concerned about competitive forces or government intervention.

What is the term 'economic durable advantage' or 'moat' in the context of Apple's business?

The term 'economic durable advantage' or 'moat' refers to the sustainable competitive advantage that Apple has, which makes it difficult for competitors to erode its market position.

What are some of the rumored features of the upcoming iPhone 15 according to the script?

The rumored features of the iPhone 15 include an A16 Bionic chip, Dynamic Island, a 48-megapixel camera, USB-C charging, and new color options. The iPhone 15 Pro Max is rumored to have an A17 Bionic chip, a programmable action button, a titanium frame, and a periscope zoom lens.

What is Dan Ives' view on the future performance of tech companies like Nvidia?

Dan Ives believes that despite a recent knee-jerk reaction to Nvidia's earnings report, the company and overall tech sector will see significant growth in the second half of the year and into the next 18-24 months.