It might seem counter intuitive to go out and buy Visa (V) simply based on the performance of Mastercard (MA) since that stock went public almost two year ago and has scored investors a 400% return despite pricing significantly higher than expected at it IPO. But if you look at all the high profile IPO’s over the last few years, IPO’s of companies with strong earnings and a good, established brand, I can’t recall a single one that has not done well. Google, Mastercard, Las Vegas Sands, VM Ware - all have done quite well since their IPO. You could make a case against VM Ware but that stock gained 100% before pulling back to its IPO price recently. So I recommend you look to buy Visa. I don’t mean go and put in a market order, but it might be worth your while to put a limit order some 5-10% below its current price.

– Faisal Laljee
Full Disclosure: I own Visa but my position can change anytime without notice.

Last 5 posts by Faisal Laljee

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