Right. So, I’ve been staring at portfolio spreadsheets again. It’s a bit like online dating, really. Endless scrolling, hoping to find something that actually delivers. And Berkshire Hathaway’s relationship with American Express? It’s…well, it’s been going strong for a very long time. They first got together back in 1964, had a brief split, but then rekindled things in 1991. It’s basically the financial equivalent of that on-off relationship you have with a really attractive, slightly unreliable friend. Warren Buffett apparently said he’d never sell. Which, let’s be honest, is a pretty strong statement. But now he’s stepped down, and one does wonder… will Greg Abel feel the same way? It’s all terribly uncertain.
I’ve been trying to be rational about it, you see. I’ve made lists. (Lists are good. They imply control. Even if the things on the list are spiraling.)
- Reasons to be Optimistic: Amex is solid. Dividend history is good.
- Reasons to Panic: New CEO. Market volatility. My general inability to predict the future.
Anyway, Berkshire Hathaway owns a lot of American Express. 151,610,700 shares, to be precise. That’s 22.1% of the whole company. Which, when you convert that into actual money, comes to over $46 billion. It’s a significant commitment, even by my standards (and I once bought a very expensive yoga mat thinking it would solve all my problems). Over the past ten years, Amex has outperformed the market – a total return of 496% compared to 305% for the broader index. Which is…good. Very good, actually. But it’s not just about the price going up, is it?
No, it’s the dividends. That sweet, sweet passive income. Amex currently yields 1.07%, which isn’t exactly setting the world on fire. The S&P 500 average is 1.15%. But here’s the thing. Berkshire Hathaway bought those shares years ago. They paid around $1.3 billion in total, which works out to about $8.60 per share. And the dividend has been growing ever since. Which means… (deep breath, calculating furiously)… they’re now making around 44% a year on their original investment, just from the dividends! That was $479 million in 2025 alone. $479 million! I mean, I’m happy if I find a fiver in my coat pocket.
It’s a bit like a long-term relationship, isn’t it? You put in the effort upfront, and then, hopefully, it keeps paying dividends (both literally and metaphorically) for years to come. I’m not saying it’s a perfect investment. Nothing ever is. But it’s a solid, reliable source of income. And in this increasingly chaotic world, that’s something to be grateful for. I just hope Greg Abel appreciates it as much as Warren Buffett did. And that the dividend keeps growing. Because, frankly, I’m counting on it.
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2026-03-12 15:02