From Yahoo Finance: 2025-05-10 14:41:00

American Express is a key holding in Berkshire Hathaway’s portfolio, catering to affluent consumers. Economic fluctuations pose risks to its consumer lending segment, impacting transaction volumes and earnings. Warren Buffett, after 65 years at Berkshire’s helm, announced his resignation. American Express, trading 15% below its 52-week high, presents a buying opportunity. Despite competition from Visa and Mastercard, American Express’ niche lies in catering to affluent consumers. The company operates a closed-loop payment system, maintaining direct relationships with users. In Q1, it reported a 5% increase in network volume and 11% higher net interest income. Buffett believes in American Express, citing its strong brand. Considerations for investors include economic uncertainties and consumer lending risks, affecting transaction volumes and earnings. American Express remains stable with low default rates and steady metrics. The recent stock price drop creates an opportunity for investors. Buffett’s investment principles have guided Berkshire’s success, with American Express as a notable holding.



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