In Greg Abel’s first quarter as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), he did exactly what he said he would. The former MidAmerican Energy executive has concentrated the holding company’s vast $330 billion equity portfolio from 42 to 29 high-conviction stocks.
He sold off many of the company’s smallest positions, including financial giants Visa (NYSE: V) and Mastercard (NYSE: MA). Visa was the largest position sold, accounting for 1% of the total, while Mastercard was a smaller stake.
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What’s more notable is the credit card stock he didn’t sell — American Express (NYSE: AXP). American Express has been one of Warren Buffett’s favorite stocks for the decades it’s been in the portfolio, and it’s one of the three stocks he said he’d never sell (the other two are Coca-Cola and Apple).
Here’s why Abel is holding onto American Express stock.
The distinctive credit card model
Buffett has made it clear on several occasions that he looks for excellent businesses, calling himself a “business picker, not a stock picker.” One of the most important things he looks for in an excellent business is a durable competitive edge — that means it has a wide enough moat to keep competitors at bay for a long time.
American Express has developed a distinctive business model in several ways, and it has successfully withstood the test of time, adapting to new trends while retaining the essential elements that make it stand out.
The membership model
American Express’ core business is credit cards, but most of them are fee-based; 70% of new products were fee-based in the 2026 first quarter. This membership piece is a critical element of the model; it generates recurring revenue through the annual fee, which also boosts loyalty. The company pioneered the rewards program, which is a key reason customers love American Express and are willing to pay an annual fee. Fees increased 18% year over year in the first quarter and accounted for 14% of revenue.
The focus on the affluent
This also works with the focus on the affluent customer, who has the money to pay for the privilege of using an Amex card and enjoys the perks that focus on travel, leisure, shopping, and fine dining. This cadre is resilient even under economic pressure, driving a resilient business.
