Sammy H

Visa: Why I Sold All of My Shares

Why not look to Mastercard, and by virtue of Visa being 2-3 times bigger, and knowing that the economy is going to be OK by 2010, and seeing the growth of Visa both domestically and internationally (see SEC filings) in the outyears, why would you not conclude that at some point in time, Visa will not only hit Mastercards price levels, but will eventually beat it as well? Any good, experiencially sound arguements as to why as opposed to intellectual possiblities that have nothing to do with reality?

The Great MasterCard - Visa Debates

Ladies and Gentlemen, no matter what anyone says, Visa and MasterCard are for all practical purposes equally distributed on the planet geographically. See the Nilson Report site to confirm this with a look at their chart; they are the credit card gurus for the industry. With regard to size, Visa is about 2-3 times bigger, depending on what measure you are looking at (revenues, number of credit cards issued, etc.). For the future, it is not unreasonable to project that Visa will not only maintain its lead, but increase it. Now to the investment scenario: whatever MasterCard has achieved price-wise, Visa will match and surpass it over time! Even if it's $100-$200 by the time you read this, investing in Visa is a no-brainer. And whatever problems you hear about one credit card company here or someplace else, generally will apply to other credit card companies as well; all businesses eventually work it out. Buy as much as you can afford, and hope that China uses their services in the future (the general population sill uses cash and doesn't trust doing business online yet-5-19-08).