5 Best Sectors To Invest In Long-Term

4. Financial Services

Number of Companies: 13

According to Growth Market Reports, the global financial services market was valued at $25.51 trillion in 2022, and it is predicted to exceed $58.69 trillion by 2031, with a compound annual growth rate (CAGR) of 9.7% during the forecast period from 2023 to 2031. Financial Services is one of the best sectors to invest in. 

Visa Inc. (NYSE:V) is the most popular financial services stock among smart investors. Visa Inc. (NYSE:V) operates as a global payments technology company. On July 25, the company declared a $0.45 per share quarterly dividend, in line with previous. The dividend is payable on September 1, to shareholders of record on August 11. 

According to Insider Monkey’s first quarter database, 173 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 177 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 19.3 million shares worth $4.3 billion. 

Manole Capital Management made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa Inc. (NYSE:V) or Mastercard, that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”