In the present situation, where the economy is in a remarkable rebound while there is also the fear of a crash, a really long-term outlook can be helpful.
An Industry & Stock with Huge Potential for the Next 50 Years
In unpredictable situations, it is important to think long term. That’s a lesson to learn in online stock trading. It can help you prepare for life after retirement, or you could pass your savings on to the next generation.
Investing for the Future? Think Tech Innovation
When you think in terms of 50 years, you need to give room for significant advances in technology. If you just think about the past 50 years, you could realize how technologies such as smartphones and the Internet were born. You can expect the same level, or even greater innovation, to shape the world in the next 50 years. That means when dealing with stocks you can think in terms of these innovations when you consider investing options.
But Motley Fool analyst Dave Kovaleski also points out that there are some major companies that could, in all probability, still exist 50 years from now. So, buying and holding those stocks could help you earn significantly in the next 50 years.
Cashless Payment – a Trend That’s Increasing
Kovaleski turns to a stock in the cashless payment industry – a technology that’s been around for some time but could see total adoption by the world in the years and decades to come. We’re talking of credit and debit cards. Visa ($V) is one of those companies that has been increasingly benefiting from the gravitation of the consumer towards electronic payment, digital transactions, and the overall fintech advancements.
The current Covid-19 situation has been extremely beneficial for companies banking on this trend. Contactless transactions are being encouraged everywhere to prevent the spread of infection. But even before Covid-19, back in 2019, around $3.5 trillion worth of global sales were accounted for by e-commerce, as per research by Global Data. A study conducted by Visa rival Mastercard, and quoted by Kovaleski reveals that France, Sweden, the Netherlands, and Singapore already have cashless purchases accounting for around 60% of their transactions. The US has 45% of its transactions as cashless.
Investing in the Market Leader
As you probably know, Visa leads the market in payment processing. The industry anyway has just a few major players, which makes it easier for the existing ones to expand. Visa recently made a crucial acquisition of the fintech company, Plaid. The company operates an important service that provides app-based mobile payments. It’s a rival to Venmo. As if Visa wasn’t already a major player in the payment processing industry specifically, and the fintech industry generally, this major acquisition gives the company a chance to attain a major foothold in the mobile payments market.
Despite Visa’s existence since 1958, it went public only in 2008 and currently trades in the region of $200 per share. Through the past 10 years, it has attained a 26.6% annualized return. Kovaleski reckons the company could keep expanding and continue its market-leading stint in the coming decades.
With advanced free stock trading offered by experienced online broker-dealers, you know what to do to get started in the stock market.