The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and technology analyst and editor Andrew Tonner discuss topics across the investing world.
In today's edition, Andrew and Austin discuss whether investors should love a classic Dow component: American Express. To answer this question, investors really need to figure out where they stand on closed versus open loop credit card systems. It's an undeniable fact that consumers are increasingly paying with plastic instead of cash. While the open loop system may have more reach currently, the ability for closed systems to realize full value along the transaction chain makes companies like American Express a compelling buy.
Austin Smith has no positions in the stocks mentioned above. Andrew Tonner has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America and MasterCard. Motley Fool newsletter services recommend American Express Company and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.