August 2023 Mastercard (MA) and Wild Turkey Russell's Reserve Bourbon Review

August 2023

Authors: Allan Maule, James Hatfield

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Website: mastercard.com

Twitter: @mastercard

CEO: Michael Miebach

Founder: Shamina Singh

Market Cap at Time of Article: $372.38B

Current Analyst Recommendations (39 analysts’ price targets average): $400.89, so at its current price of $392.96, it is slightly undervalued according to analysts.

Revenue: $6,269M last quarter (+14% YOY), beating estimates by 1.6%.

Insider Ownership: 10.66%, which is solid for a company of this size. It means management has a stake in the success of the company.

What makes Mastercard (MA) worth your hard-earned money for the next decade or more?

When we think about companies that will be around in 10 years, it’s nearly impossible to see a world that doesn’t involve Mastercard. Credit cards are going virtual, are easy to issue, and best of all, are making buying and selling a breeze. Mastercard is also a forward-thinking company that continues to improve with technology. It is trusted by customers and used millions of times every day. Mastercard also doesn’t have to do too much to keep the business running, and due to the trust and brand it has created, it’s pretty hard to disrupt this company.

Of course there are competitors, but there aren’t many. Some businesses still prefer to receive cash to skip the credit card fees, but on the whole, businesses worldwide accept Mastercard. Mastercard is also strong with reward points and helps companies and customers stick with the brand as they build upon those points.

Why talk about Mastercard to all your friends and family?

The one thing you can count on is that it will be instantly recognizable when you talk about owning Mastercard as a stock in your portfolio. Your family and friends will likely have a Mastercard in their pocket or phone. Owning companies you understand will help your conviction as the stock goes up and down in price over the following decades.

Mastercard also pays a small and fast-growing dividend, so you can also talk about dividends to your family and friends. In addition, you can talk about the 14% year-over-year growth in revenue or the 16% year-over-year free cash flow growth, or you can discuss the year-over-year 16+% earnings per share or all the share buybacks. Mastercard is an incredible compounder and an easy stock to enjoy as you age.

How is this company disruptive?

Say goodbye to cash all over the world. Cash is not fun to carry around in your wallet or purse; it can be lost, stolen, or get you sick (seriously, the stuff is nasty). Having a company like Mastercard there for you in tough times, like when someone steals your wallet or purse, it’s easy to lock down and dispute a lousy purchase. Having that extra layer of protection as a consumer is reassuring.

From a business standpoint, relying on credit card payments does cost money. However, you also are paid quickly, so you can build that into the price or margin as a cost of doing business. Using Mastercard also makes your business easier to work with and builds trust towards the consumer. We also love that Mastercard continues to look at disruptive technology like the blockchain and other creative ways to do business. Mastercard will continue to innovate as they acquire other companies (Mastercard doesn’t spend on research and development.).

Conclusion

Mastercard is an easy company to recommend that you consider in your portfolio. It could quickly become a cornerstone of a portfolio and a stock that could become its number-one holding over the decades. We see plenty of potential growth ahead, and it also could be a great first company to consider purchasing if you’re new to stocks.

Wild Turkey Russell’s Reserve Bourbon

Proof: 90  Price: $45

Smooth. Dependable. Rich with memory, and still capable of delightful surprises after a long history. This is what I think of when I reach for and taste Russell’s Reserve bourbon after more than a decade of fandom. While the recipe for this 10-year-old whiskey hasn’t changed since it was first released to honor master Wild Turkey distiller Jimmy Russell, the countless quips and variances of barrel construction, site conditions, and maturation make this a whiskey well-worth revisiting if you haven’t sipped it in a while. Here’s to making new memories!

Nose:

Potent scents of caramel and vanilla mix with graham cracker and oak. This takes a classic bourbon profile and smoothes it out in a 45% spirit—all without losing its power.

Taste:

The caramel and vanilla hang around, adding traces of tobacco. Seasoned bourbon drinkers might long for stronger flavor than this gentle taste, but that’s a small complaint.

Finish:

Look for rye spice and tobacco to take the lead here, though the vanilla smoothness still stands proud. Delicious and comforting, like a hug from an old friend.

Overall Rating: 3.5/5