American Express: Still Spending, Darling?

Right. So, Berkshire Hathaway. Everyone gets terribly excited about what Warren Buffett likes, as if his judgment is some sort of infallible oracle. Which, let’s be honest, is probably true. But still. It’s just…people. And people get things wrong. Anyway, I’ve been looking at American Express, a big chunk of his portfolio, and wondering if everyone is getting a little carried away. It’s doing well, obviously. Double-digit growth, all very impressive. But in the world of payments, things move fast. Terribly fast.

I’ve been trying to be sensible, you see. I’ve made a list. A very long list. It started with “Reasons to Be Optimistic” but quickly devolved into “Things That Could Go Wrong.” Honestly, the latter is much longer. It’s mostly about these new payment things. Buy Now, Pay Later. Stablecoins. All very…modern. And slightly terrifying.

Units of Cryptocurrency Lost: 0 (so far). Hours Spent Trying to Understand Blockchain: 7. Number of Times I’ve Considered Just Sticking to Cash: 15. It’s all so complicated.

Apparently, these BNPL things appeal to younger people who don’t want credit cards. Which, fair enough. Credit cards are a bit…last century. But it feels like a slippery slope. Everyone wants everything now. And if they can’t pay for it, well…someone always does. The stablecoins are even weirder. Digital money that isn’t really money? It sounds like something out of a science fiction novel. Although, I suppose so did online shopping, once.

PayPal and Stripe are dabbling, of course. Everyone is. And there’s this new law, the Genius Act, which is meant to make stablecoins more…stable. Which is reassuring, I suppose. Although, government regulation rarely solves anything, does it? It just creates more paperwork.

But American Express…they’re still thriving. Which is annoying, frankly. They made nearly ten billion dollars from merchants last quarter. Ten billion! And people like their cards. They like the perks. They like the rewards. They like feeling important. It’s all very…human. And merchants will pay a premium to accept Amex, because those are the people with money. It’s just basic economics, really. Although, it feels a bit…unfair.

Apparently, Amex is starting to attract younger customers, which is good. Millennials and Gen Z are the biggest spenders now. They’re also the most easily distracted, but that’s another story. They’re even looking at stablecoins. Because, why not? Join the party.

I’m not saying Amex is doomed. Far from it. It’s a solid company. But the world is changing. And things that were once safe and predictable are no longer so. I’m just…a bit skeptical. I think everyone is getting a little carried away with the optimism. It’s a good time to be cautious, I think. And maybe, just maybe, to look for opportunities elsewhere. I’ve started a new list, you see. “Companies That Aren’t American Express.” It’s surprisingly long.

Days Spent Worrying About the Future of Finance: Too Many to Count.

2026-02-09 14:22

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