Berkshire Hathaway Will Hold American Express for Decades Under Greg Abel

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Berkshire Hathaway is predicted to retain its nearly 40-year stake in American Express under incoming CEO Greg Abel, driven by the card issuer's success in attracting younger generations through its rewards program. In the second quarter of 2026, Gen Z spending grew 40% year-over-year, outpacing millennials at 14%, Gen X at 10%, and baby boomers at 5%. American Express collected $5.61 billion in net card fees but spent $9.94 billion on rewards in the first half of the year, a gap it covers with $19.68 billion in discount revenue from merchant fees. The company's 155.1 million cards in force create network effects that sustain this cycle, supporting double-digit revenue growth and record earnings guidance for 2026.

Impact on stocks 2

Digital Finance & Tokenization▲ · 1 stocks
American Express Company
AXP
▲ PositiveDemandrelevance

Gen Z spending growth of 40% and strong card fee revenue indicate robust end-customer demand for American Express's services.

Energy Transition & Power Demand▲ · 1 stocks
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Berkshire Hathaway is predicted to retain its stake, implying continued value from its investment, but the article focuses on American Express, not Berkshire.

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