Here at the Motley Fool, we mostly discuss ASX shares and why we should invest in them. However, many ASX investors also like to look beyond our shores to US stocks for profitable investments. After all, the ASX is a relatively small stock market on the world stage.
The ASX has many fantastic companies to be sure. But world-dominating behemoths? Not so much. That's why many investors, myself included, also like to buy US stocks.
The American markets are home to companies that offer size and scale that ASX stocks can barely dream of. Think of the likes of Apple or Amazon. As such, they make for a fertile hunting ground for top companies to add to our ASX portfolios.
One top US stock that I personally own and would recommend to any ASX investor is Mastercard Inc (NYSE: MA).
You've probably heard of Mastercard and probably even have its logo, or that of its arch-rival Visa Inc (NYSE: V), on a card in your wallet right now.
Mastercard is an interesting company in that it functions almost like an infrastructure company. The infrastructure in question is Mastercard's global payments network. This company acts as a middleman between customers, their bank accounts, and merchants.
Want to pay for something using a card or phone? Mastercard makes it happen quickly and securely, charging a small fee for the trouble of course.
But what makes this payments stock a great buy for ASX investors?
Image source: Getty Images
Why ASX investors should buy this US stock
Well, to kick things off, Mastercard is at the forefront of a very powerful and very global tailwind right now – the transition away from cash payments. Here in Australia, this transition is in an advanced state, with the vast majority of everyday transactions now cashless.
But in other parts of the world, even in advanced economies like the United States, cash is still king. Yet, I think the increasing prevalence of electronic payments in most countries will inevitably continue. As such, Mastercard stands to benefit from this trend more than almost any other company, aside from Visa of course.
But enough of the vibe talk; let's get to some numbers. As our Fool colleagues in the States recently reported, Mastercard grew its annual revenues by 22% in 2021, 23% in 2022, and 13% in 2023. The company is on track to hit roughly 16% growth in 2024.
The company's earnings per share (EPS) have been growing even faster, with 34% growth in 2022, 15% in 2023 and 20% over the first nine months of 2024.
With numbers like that, it's hard to argue this company isn't a growth beast.
But don't take my word for it. Take legendary investor Warren Buffett's. Buffett has owned Mastercard stock through his company, Berkshire Hathaway, for years.
To play us out, here's a clip of Buffett stating that he wished he had bought more back in 2018:
