Visa and Mastercard Relentless Climb

An investment that so far hasn't stopped climbing is MasterCard (MA). Since May 2006 when the IPO began at about $40 the

Money In da Bank!

stock has continued its upward movement to what we see today at $293 a 547.7% growth! In the span of its first calendar year, MasterCard achieved 119% growth. In the second year, 108% growth, and in 2008 so far nearly 36%.

So now lets look at the new IPO baby, Visa (V). YTD has achieved an impressive 56.6% so far! When I spoke with TDAmeritrade folks and mentioned that I was interested in Visa. I got what amounted to a trouncing both in stares and in muffled comments. So what is wrong with 56.6% I wonder? Thats money in da bank boys!

Though Visa is still a baby, this baby is on track to smash MasterCard's record performance. Even with more talk of a U.S. recession (Warren Buffet considers us already in recession) and the possible talk of a global recession (there will still be countries that are not as affected as the U.S. and the U.K.) people will still use credit cards for their transactions.

But why should they? Well, when I was in my old corporate job, I went out to lunch every day. Sometimes I brought others from my office. And inevitably time and time again, these folks would say the same thing: "Does this place take credit cards?" and then I'd say: 'I don't know...why?' and they'd respond: "I don't carry cash". So in this new age beyond the Baby Boomers, our kids don't carry cash. Perhaps they don't like bulking up their wallets with the greenbacks. Or perhaps it is some kind of statement of sorts that they are the new future?

I was on my way back from the Future1investors Conference in Cabo San Lucas and a young Cox Communications employee who had just finished getting a house built for he, his wife, and baby on-the-way said the same thing. "I only carry credit cards".

MONEY In da Bank!