Per Jim's suggestion on an earlier thread, I thought I would post about American Express, not quite OT as it is a significant BRK holding.

The quality of American Express has continued to surprise me in the 20+ years I have been following it. AMEX has been underestimated by many investors who feel V, MC and the new alternative payment processors will disrupt their business, but continues to thrive. From the original salad oil crisis which almost bankrupt it and Buffett's significant purchase, to other crises like, 2009 GFC, loss of Costco contract, Chase premium travel reward cards, 2020 pandemic travel decimation, Amex seems to overcome the most serious disruptions and continue its double digit revenue/earnings growth. Compare it to all the financial companies booted out of the DJIA in recent years and the ones still in it.

It is a relentless and excellent operational and marketing machine which is upto overcoming any challenge.An example is its successful move to offering online savings accounts and raising low-cost capital; compare that with Goldman's disastrous Marcus venture.

It is too bad Buffett can't acquire the whole company because of its bank holding structure. A great opportunity would have been in 2009, far better than the GS, BAC, USG, investment he made instead.

About every decade or so Amex offers excellent entry points, and we are not too far away from one, maybe another 10% decline from here.

This post on Seeking Alpha is an excellent deep dive into a company's business model, competition, performance and prospects. Also read the BusinessWeek article on Amex's marketing to GenZ customers, referenced in the SA post.

seekingalpha.com - American express leading brand at a rare discount