table 11. Visa one of my biggest holdings have been quietly compounding while everyone focus are on hyperscalers.
Examples from recent data: ~31–34% in 2025/2026 periods; multi-year averages often in the high 20s to low 30s.
It comfortably exceeds Visa’s cost of capital (WACC typically estimated around 8%), creating a wide positive spread and substantial economic value.

This reflects Visa’s asset-light network business model: enormous operating leverage, high margins (operating margins often ~60%+), strong free cash flow conversion, and limited need for heavy capital reinvestment relative to profits. The global payments network benefits from scale, network effects, brand strength, and high switching costs—classic durable competitive advantages that support ROIC persistence