Visa Delivers Market-Crushing Returns Through Recessions and Management Shifts as Digital Payments Expand

Visa stock has vastly outperformed the market since its 2008 IPO, with over 1,700% total return versus 340% for the S&P 500.

Visa's high returns are driven by its exceptionally high and stable ROIC (return on invested capital), which has remained over 20% even during recessions.

Visa's investments in adjacent services like data security and financial software have fueled growth. It is also investing in blockchain despite crypto market turmoil.

New Visa management including a new CEO raises some uncertainty, but the global shift toward digital payments seems likely to continue benefiting Visa.

With a stellar history of capital allocation, Visa could continue generating market-beating returns for years to come if it maintains high ROIC.