T Rowe Price (TROW) 2012 Review

T. Rowe Price Group Inc, TROW, provides investment advisory and administrative services to an assortment of no load funds, sponsored investment products and private accounts.

T Rowe Price has generated a 18-20%+ return on equity and a 10-15% growth rate in earnings and dividends over the 10 years. 

While TROW suffered a decline in assets under management due primarily to the late 2008-early 2009 decline in stock prices, a recovery occurred in 2010 and should continue as a result of:

(1) the excellent track record of its funds as well as recent investor optimism has increased the value of current assets under management as well as attracting new customers,

(2) the introduction of new products such as country funds,

(3) an aggressive cost cutting program.

Mastercard (MA) 2012 Review

Mastercard (MA) is a global leader in electronic payments serving as a processor, franchisor and advisor to approximately 25,000 financial institutions for their credit, debit and other payment programs. 

In addition, it manages a family of payment card brands (Mastercard, Mastercard Electronic, Maestro, Cirrus). Importantly, MA does not extend credit; it simply acts as a toll collector and is paid on both transaction volume and dollar volume.

The company earns in excess of a 25% return on equity and has grown profits from $1.76 in 2004 to $18.70 in 2011 and its dividend from $.09 in 2006 to $.60 in 2011.

While the 2008-2009 pullback in global consumer spending impacted the gross dollar volume of transactions, the company continued to grow; further improvement should come as a result of: