I view Mastercard Incorporated (MA) as a core long-term investment. Given my long-term outlook for the company, I have acquired additional MA shares for our daughter on the basis of a very long-term investment time horizon.
Further to my August 6th Mastercard Incorporated (MA) article, I decided today to acquire additional MA shares in an account for which I do not disclose details. The account belongs to our daughter, and therefore, my decision to acquire shares for her was made on the basis of these shares being held for the very long-term.
While MA’s share price has retraced from a 52 week high of $293.69 set in early May, it is entirely possible MA’s share price could retrace below the $263 I paid to acquire shares today. In the grand scheme of things, however, I envision MA will be far more valuable many years from now so I spent very little time deliberating about this purchase.
Several years ago I acquired shares in other high quality companies on her behalf (Brookfield Asset Management, Paychex, Inc. and Intact Financial Corporation are 3 examples). She was, however, far too young to appreciate/have a remote interest as to the importance of making money work for her. Our daughter is now at the stage where I think she will have a better appreciation as to my underlying rationale for investing in high quality companies on her behalf!
A key reason I acquire shares for her in high quality companies for the long-term is that I want to demonstrate that by being financially disciplined today, there is a far greater likelihood that she will be in a better financial position several years into the future. While enjoying the present is extremely important, enjoying the present at the expense of future enjoyment is unwise.
It is not out of the realm of possibility that MA’s share price might retrace further subsequent to today’s purchase. By purchasing shares today, however, our daughter is eligible to receive the next quarterly dividend! She will, in essence, generate income even though she did not have to trade time for money.
I will also encourage our daughter to read the transcript of MA’s Q3 2019 Earnings Call, review the financial statements and Earnings Presentation which are scheduled to be released October 29th so she can start to think/behave like a company owner (even though her ownership interest is negligible).
I wish you much success on your journey to financial freedom.
Thanks for reading!
Note: I sincerely appreciate the time you took to read this article. Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
Disclosure: I am long MA, BAM, PAYX, and IFC.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.