Why American Express is a Brilliant Buy-and-Hold Investment

Warren Buffett`s long-term investment in American Express demonstrates the effectiveness of his buy-and-hold strategy. American Express has outperformed other credit card companies due to its strong brand recognition, targeted customer base, and profitable business model. The company`s focus on premium credit cards and its own payment network allows it to attract affluent customers and charge premium fees. This strategy, combined with the consistent revenue generated through interchange fees, positions American Express for continued growth, especially in an inflationary environment.