Yahoo Finance
If you had put $10,000 into Mastercard [NYSE:MA] when it went public in 2006 — reinvesting dividends and somehow resisting every temptation to sell during recessions, lawsuits and tech disruption scares — you’d be sitting on nearly $1.2 million today.
Not bad for a company many investors once feared was a legal time bomb.
Here’s how toget rich from rising US property values with as little as $100— and without the stress of angry tenants Robert Kiyosaki saysthis 1 asset will surge 400% in a yearand begs investors not to miss this ‘explosion’ Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks.Here’s where their money is going Twenty years ago, Mastercard looked less like a future stock-market monster and more like a financial institution trying to escape its own baggage.
The company was tangled in litigation over swipe fees (1), facing competition from early digital-payment upstarts like PayPal and still operating with the sluggish economics of a bank-owned cooperative.
Today, it sits in one of the most exclusive clubs in the market.
Since its May 2006 IPO, Mastercard stock has climbed nearly 12,000% (2).
Among companies that were already in the S&P 500 at the time, only Nvidia and Apple have performed better over the same stretch (3).
That kind of return forces vexing questions for ordinary investors: how do companies go from “risky” to seemingly unstoppable, and what does Mastercard’s rise say about where money is headed next? Most consumers think Mastercard makes money every time someone swipes a credit card.
What investors eventually figured out was that Mastercard was selling a kind of money-moving infrastructure, not plastic.
The company built a giant tollbooth for global commerce, collecting tiny fees as money moved around the world digitally.
As cash steadily disappeared from daily life, that tollbooth became enormously valuable.
Back in 2006, Mastercard executives were largely focused on “cash displacement” — persuading consumers to stop paying with bills and checks and start paying electronically instead.
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