American Express: An underrated investment opportunity in the Berkshire Hathaway portfolio.

American Express: An underrated investment opportunity in the Berkshire Hathaway portfolio.

American Express could be a promising investment opportunity that is often overshadowed by Apple. According to analysts, the company could achieve good results despite the difficult economic situation. A sales increase of 14.9% and a profit increase of 14.3% are expected for the 2023 financial year. American Express also has a strong customer base, particularly among wealthy customers who spend three times as much as regular customers. The company has been able to effectively manage its receivables and credits from cardholders, indicating good creditworthiness of customers. American Express also increased its customer base, particularly among Millennials and Gen-Z members. The company plans annual sales increases of 10% and profit increases in the mid-teens in the medium term. The valuation of American Express shares appears to be reasonable, with a P/E ratio of 13 for 2024. In addition, the company is shareholder-friendly and has continuously increased its dividend and made share buybacks in recent years. Source: According to a report by www.aktienwelt360.de