Rare is the investment newsletter that hasn’t opined about the Visa IPO. In the wake of the Bear Stearns fiasco, the frantic bucket brigade by Hank Paulson and Ben Bernanke, frantic inflation, $100 oil, $1,000 gold, and a zillion other terrifying things, the thirst for a successful investment is almost debilitating.
Which means that anyone who promises you that he can help you profit by getting on the right side of the largest IPO in American history — which Visa stands every chance of being — is going to get your attention.
So … have I got your attention? Because I promise …
Just kidding. All I can promise is to share my opinion. Like many of the rest of you, I find the Visa IPO somewhat alluring — we are not blind, we have all seen the performance of Mastercard over the past couple years, and we know that Visa has about twice the market share of Mastercard. This is a rare thing indeed, a global duopoly, and the smaller participant in the duopoly has been public long enough to make everyone comfortable with their business model and get the “big brother” a decent price as they sell to the public.
So the banks and other owners of Visa aren’t stupid. They’ve seen that