Educated at Checkout

April 2026 Client Letter

How everyday transactions reveal the systems behind modern investing

           There are certain reality checks that only your children can deliver.

            Not long ago I was standing in line at Publix with my son, doing what I’ve done for years — reaching into my wallet and running my credit card through the reader. He looked at me the way a twenty-something does; his face showed not quite disbelief, not quite exasperation, but something in between.

            “Why are you swiping? You’re supposed to tap. And why do you even have a card? Just use Apple Pay.”

            Before I could respond, he was already explaining. “It’s encrypted, it’s safer, it’s just better.” Then, almost as an afterthought: “You should look at the Apple Card. It’s titanium. There are no numbers on it.”

            I stood there at the Publix checkout, being educated by my son about the future of payments.

            The thing is, he wasn’t describing something coming. He was describing something already here. For his generation, the physical wallet is essentially a legacy system. What replaced it isn’t just more convenient. In important ways, it’s more secure, more integrated, and more deeply embedded in daily life than the card in my pocket ever was.

            The shift in how people pay, what they carry, and what they trust has already happened for an entire generation, and, for many of them, it runs through a single device. Apple didn’t announce it. It just became normal.

            What feels simple to the user is often complex beneath the surface.

            Which is why, driving home from Publix that day, I found myself thinking less about groceries and more about what Apple actually is and where it belongs in client portfolios.

 Apple: The Interface

            Apple is not typically thought of as a traditional consumer staple, but in some ways it is becoming one.

            The iPhone is no longer just a device. For many users, it functions as a daily utility—used for communication, payments, navigation, authentication, and access. It is checked frequently, carried everywhere, and integrated into routines in a way few products are.

            That level of integration matters.

            Historically, consumer staples were defined by consistency of use and reliability of demand. Products such as household goods and food items were purchased regularly and became embedded in daily life. While Apple operates in a different category, the pattern is similar. The device is not consumed, but it is relied upon.

            Increasingly, the phone is becoming a wallet.

            Payments, boarding passes, identification, and banking functions now live inside the same device people carry throughout the day. Personally, I’ve found myself leaving my wallet at home more often. There is less reason to carry something filled with sensitive information when a more secure alternative is already in hand.

            The Apple Card offers a glimpse into how quickly that shift is taking place.

            Unlike traditional credit cards, the physical Apple Card contains no visible number, expiration date, or security code. Those elements exist digitally and are dynamically managed. Transactions made through Apple Pay generate unique tokenized credentials, reducing the exposure of sensitive information.

            The experience is straightforward. The infrastructure behind it is not.

            Apple does not operate the payment network. It does not take on traditional credit risk in the same way a bank does. Instead, it sits at the interface—between the user and a broader financial system—where design, security, and convenience converge.

            That position matters.

            As more financial activity moves through devices, the companies that control the interface may play an increasingly important role in how transactions are initiated, authenticated, and experienced.

 Key Takeaway

 What we see is often only the surface.

The systems beneath—the ones that enable, connect, and support—are where durability is built.

  Visa: The Network

            If Apple represents the interface, Visa represents the infrastructure behind it.

            Visa operates one of the world’s largest payment networks, connecting consumers, merchants, and financial institutions across millions of transactions each day. Traditionally, that system relied on physical cards and static account numbers.

            That model is evolving.

            Today, many transactions no longer rely on the card number printed on a piece of plastic. Instead, they use tokenization.

            Tokenization replaces a card’s actual number with a unique, transaction-specific code. That code is tied to a device, a merchant, or a specific purchase. Even if intercepted, it cannot be reused in a meaningful way.

            The process is largely invisible to the user. A phone is tapped. A transaction is approved. The underlying credentials are never exposed.

            The most important systems are often the least visible.

            As payments become embedded in software and devices, the transaction itself fades into the background. Subscriptions renew. Apps reorder. Connected devices initiate purchases. In some cases, no action is required at all. Payment is no longer a distinct event. It becomes part of the process.

            For Visa, this is not a disruption of its model. It is an extension of it.

            The company’s network still sits at the center of authorization, routing, and settlement. What has changed is how credentials are delivered and protected. As digital payments expand, the role of the network may become more embedded, not less.

Kinder Morgan: The Foundation

            If Visa represents digital infrastructure, Kinder Morgan represents physical infrastructure.

            Kinder Morgan operates one of the largest energy transportation networks in North America, moving natural gas, refined products, and other fuels through a vast system of pipelines. These assets are not often seen, but they are used every day.

            Much like payment networks, pipelines are not the product. They are the system that allows the product to move.

            Natural gas still plays a central role in electricity generation, heating, and industrial activity. As demand for power increases—including from data centers and digital infrastructure—the importance of reliable energy transport remains.

            That is where Kinder Morgan fits.

            Its pipelines generate revenue based largely on volumes moved rather than commodity prices. Contracts are often long term, and cash flows tend to be more stable than those of producers. The business is not built on prediction. It is built on usage, and much of that activity takes place in the background.

            In that sense, invisibility is not a weakness. It is part of the design.

            Convenience, whether digital or physical, is often built on layers of unseen infrastructure.

            Electricity arrives. Data flows. Payments clear. In each case, systems operate in the background, largely unnoticed unless something goes wrong.

            Kinder Morgan operates in that background.

            In portfolios, these types of businesses can serve a different role than higher-growth companies. They may not drive headlines, but they can contribute to income, stability, and diversification over time.

Market Backdrop: Oil, Geopolitics, and Economic Resilience

            The phone has been ringing more than usual lately.

            Clients are asking about the Middle East, the Strait of Hormuz, oil prices, and what it all means for their portfolios. The questions are fair, and the concern behind them is understandable. These are not abstract headlines. They carry real potential consequences for energy markets and the broader economy.

            I want to be straightforward about something. Geopolitical situations like this can shift quickly. By the time this letter moves through editing, compliance review, and production, the specifics may look different than they did when it was written. Rather than speculate on outcomes that may already have changed, it is more useful to focus on how we think about the range of possibilities and why our approach does not depend on predicting which one unfolds.

            Some commentators have suggested that a sustained rise in oil prices could increase recession risk, particularly if higher energy costs pressure both consumers and central banks. That risk is real and worth considering.

            But, in our opinion, the structure of today’s economy differs from that of prior decades. Energy represents a smaller share of overall economic activity than it once did, and the United States has become a significant producer. Higher oil prices can still create pressure, but they also tend to support activity and investment in other parts of the economy.

            Recent history offers a useful reference point. The energy shock of 2022 contributed to inflation and market volatility, yet it did not result in sustained economic contraction. The relationship between oil prices and economic outcomes may be less direct than it once was.

            Not every disruption becomes a downturn. Not every rise in oil prices changes the long-term path of the economy.

            Markets tend to react quickly to headlines, but economies adjust more gradually.

            In our view, elevated energy prices may influence sentiment, contribute to periods of volatility, and place some near-term pressure on valuations. Over time, however, earnings growth, capital investment, and the ability of well-positioned companies to adapt tend to play a more decisive role than any single commodity move.

Bringing It Together

            The companies discussed in this letter—Apple, Visa, and Kinder Morgan—operate at different layers of the same system.

            Together, they reflect how modern activity is supported: through interfaces, networks, and physical infrastructure.

            They serve different functions yet share a common role. They operate in ways that are not always visible but remain essential to how everyday systems function.

            In investing, that distinction matters. What we see is often only the surface. The underlying systems—the ones that enable, connect, and support—are often only noticed when something stops working.

            At Richard C. Young & Co., Ltd., we seek to align client capital with businesses that, in our view, are built to endure—companies with durable structures, consistent demand, and the ability to adapt over time.

            Diversification remains central to that process. No single company or theme defines a portfolio. But a collection of businesses, operating across different parts of the economy, can create balance and resilience.

            We do not attempt to predict short-term outcomes or react to every headline. Instead, we focus on businesses we believe are positioned to compound over time, supported by underlying systems that tend to persist.

            What matters most is often what we don’t see.

            As always, we welcome the opportunity to discuss your specific situation. If you have questions or if anything in your financial life has changed, please call us at (800) 843-7273. That conversation is always worth having.

Warm Regards,

 

 

 

Matthew A. Young
President and Chief Financial Officer

 

P.S. We recently updated Part 2A and Part 2B of our Form ADV as part of our annual filing with the SEC. This document provides information about the qualifications and business practices of Richard C. Young & Co., Ltd. If you would like a free copy of the updated document, please contact us at (401) 849-2137 or email us at cstack@younginvestments.com. Since the document was last updated in March 2025, there have been no material changes.