Fiserv
Fiserv (FISV, Financial) is a diversified provider of financial technology and payment processing services to banks and merchants. Decreased merchant activity during the COVID-19 pandemic, combined with a sooner-than-expected CEO transition and partial sale of KKR's stake in the company, weighed on Fiserv's stock price and created an opportunity for us to start a position during the fourth quarter. Fiserv has a strong business franchise with dominant market positions in several major business lines, including global merchant transaction processing, U.S. issuer processing, and U.S. core banking processing. The company has a shareholder-focused management team and trades at an attractive valuation given its growth prospects. It also offers significant margin expansion potential from revenue synergies and cross-selling opportunities. On December 31, Fiserv was a 0.7% position in the Fund.
From Dodge & Cox Stock Fund's 2020 annual shareholder letter.
