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    • What Visa's IPO Means for This Market [view article]
      GKM,

      No, of course JPM and the rest aren't deliberately giving the public a payday out of some philanthropic impulse. But then that's not a serious rejoinder to what anyone else has said, or any kind of evidence for us to consider as we try to judge Visa's value.

      Sergey is, I think, half correct: Visa's owners are trying to use this IPO to raise cash. There's nothing sinister about that. And since most of them are keeping most of their shares, how down on Visa's prospects can they actually be?

      But, as Philly Jim points out, Sergey is half incorrect: Visa, like so many other giant American companies, is rapidly expanding its global presence. When I got my Bank of China credit card last year, I was given the choice between Visa and Mastercard. None of the big US banks are directly making money on my local purchases, but Visa is. And there is still a LOT of room for growth in the Asian market-- and all the national economies around here are growing at 5% or more per year. Visa is rapidly expanding in countries with expanding middle classes and high personal savings levels.       Mar 23 03:59 AM
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