Prediction: Under Greg Abel, Berkshire Hathaway Will Hold This Warren Buffett Stock for Decades for This Remarkably Simple Reason

Axe Cap view

Why Berkshire’s Bet on American Express Matters Even for SA Investors

Berkshire Hathaway’s long-term hold on American Express highlights durable growth that resonates well beyond the US.

American Express isn’t just another credit card company; it runs a finely tuned ecosystem where merchant fees fund generous rewards, attracting younger consumers—Gen Z spending is up 40% year-on-year. This cross-generational appeal makes it a rare breed with sustainable growth. For South African investors, the lesson isn’t to chase AXP directly, but to look at what drives such durability: strong consumer franchises that leverage network effects while managing costs. On the JSE, banks like Standard Bank or Capitec that also sustain consumer engagement amid rising rates could mirror this resilience, though less flashy. With the rand still vulnerable versus the dollar, U.S. dollar-earning assets like American Express represent quality, but rand-hedged local banks offer more tactical plays. If the US consumer abruptly pulls back or fintech disrupts faster than expected, even AXP’s moat could be tested. this is just our opinion and not financial advice