Visa's Latest Big Bets in Fintech
When extolling the virtues of long term, buy-and-hold investing, it's hard to think of a better example than Visa Inc. (NYSE: V). Since going public in March 2008, Visa's shares have returned well over 600%, crushing the market in the process. Even investors who only recently climbed aboard the stock have done remarkably well; shares are nearly up 30% year-to-date.
Of course, these heady returns are powered by consistently strong results. In its most recently reported quarter -- another masterpiece -- Visa saw both net revenue and net income increase by 26% and, after accounting for the acquisition of Visa Europe, processed transactions grew by 13%.
Many investors might view the manner in which Visa makes money as an incredibly boring process, even while admitting its overwhelming success. After all, consumers swipe credit cards and Visa gets a cut. Nothing to it, right? These same investors might be surprised, however, to learn that Visa regularly makes large investments in fintech, the practice of leveraging technology so that traditional financial services can be provided more cheaply and efficiently. In just the past few months, Visa has extended partnerships and made new agreements in this space.
Source: Fool.com
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