American Express Caters to Affluent Spenders. Can That Cushion It If the Consumer Cracks?
There's a reason that American Express is one of Warren Buffett's favorite stocks.
Overview
There's a reason that American Express (NYSE: AXP) is one of Warren Buffett's favorite stocks. It's not only one of Berkshire Hathaway's longest-held stocks; it is also one of the conglomerate's largest positions.
American Express is not the largest credit card company or payment provider, but it occupies a unique position within the industry. First, American Express is a closed-loop provider, meaning it is a credit card issuer and lender with its own network. In addition to swipe fees, it also generates interest income on the loans.
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Originally published at www.fool.com.
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