Visa (V -0.47%) and MasterCard (MA 0.01%) are two incredibly important pieces of our modern economy. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on March 25, Fool.com contributor Jason Hall shares s few quick thoughts on what makes the two giants of financial services very safe investments.
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Jason Hall: I'm going to mention the ones that are started at the open, Visa and MasterCard. I think they're very tied to the consumer economy. The ups and downs of economic cycles very much affect their businesses, but they have such incredible operating leverage.
The operating margins that they generate, the free cash flow margins that they generate from their business, and because they're basically the rails that the modern economy runs on. This is where modern commerce lives, is on Visa and MasterCard.
I think they are incredibly safe businesses to own for a long time. There are clear risks, but again, I think they're far safer companies than people realize.