Berkshire Hathaway’s 22.5% Stake in American Express Highlights Long-Term Conviction in Premium Credit Card Franchise

Berkshire Hathaway maintains a significant 22.5% stake in American Express, reflecting a long-term conviction in the premium credit card brand's strength, despite the stock's current valuation. Under new CEO Greg Abel, Berkshire is actively deploying its cash pile, making substantial investments in Alphabet and acquiring Taylor Morrison Home, while also resuming share buybacks. This marks a shift towards a more active capital allocation strategy, even as Berkshire's stock performance has lagged the S&P 500 this year.