Buffett's Plastic Portfolio: Why Visa and MasterCard Will Charge Higher

Warren Buffett is a fan of credit cards these days. The legendary investor upped his stakes in Visa and MasterCard last quarter, according to an SEC filing released Friday that shows Berkshire Hathaway's latest holdings. The move is likely a bet that consumers are ready to spend again as the economy picks up steam, as well as a validation that, even with the recent rollout of Apple Pay, the modern wallet is far from dead. In fact, Visa and MasterCard are actually participating in Apple Pay, and are set to profit handsomely from all of the mobile payment innovations that are causing the press to declare that plastic is obsolete. As the world continues to undergo a massive secular shift from paper to plastic, Visa and MasterCard stand to benefit immensely. These are two incredibly consistent payment processors riding a powerful long-term theme.