Mastercard (MA, Financial) reported a strong result in 2019. Net revenue grew 16% on a currency-neutral basis. With operating leverage, a lower tax rate and share buybacks, diluted earnings per share grew 23% on a currency-neutral basis. We continue to believe the longstanding secular tailwinds for Mastercard remain intact.At the same time, we continue to monitor potential technological threats as well as regulatory and legal developments in various geographies. Taken altogether, we believe Mastercard’s current valuation is fair for a superior business with a history of positive surprises. We nonetheless trimmed our position during the year as the stock price outpaced our estimate of growth in intrinsic value.
From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund mangement performance discussion for 2019.
