Investment Thesis: American Express

This edition focuses on a financial services company recognized for its outstanding customer service, exclusive membership perks, and strong brand identity. A symbol of financial stability and innovation, the company consistently delivers value to both customers and shareholders. With its strategic growth plans and commitment to excellence, this financial institution presents an attractive long-term investment opportunity, offering the potential for substantial returns. In this analysis, we will explore how investing in this industry leader can enhance your portfolio.

This recommendation is just a start. The next step is to do your due diligence process which will then help you to make the investment decision. We strongly advise investors to do a thorough analysis of the recommendation and understand the soundness of the business before investing in this company. Also, please consult your investment advisor before making a decision.

Business Profile (NYSE: AXP)

American Express (Amex) is a globally integrated payments company dedicated to providing products that enhance customers' lives and support business success. As a bank holding company regulated by the Federal Reserve, Amex operates through key subsidiaries, including the American Express Travel Related Services Company, Inc., which offers travel and expense management solutions. This service expands Amex's reach beyond payments into travel management.

In addition to its travel services, Amex is renowned for its widely accepted credit and charge cards, providing seamless access to products and services through multiple channels to meet global customer needs. Amex operates across four main business segments: U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS), and Global Merchant and Network Services (GMNS), allowing it to target a broad range of clients. Through strategic partnerships and a focus on product innovation, Amex maintains a competitive edge in the financial services industry, driving growth and value for stakeholders.

Amex's commitment to cutting-edge technology and its integrated business model enables it to strengthen its global market position and enhance customer experiences, ensuring continued growth and success across the payments landscape.

Story

Founded on March 18, 1850, by Henry Wells, William G. Fargo, and John Butterfield, American Express initially focused on express delivery services, facilitating the transportation of financial documents, parcels, gold, and currency across the United States. During the Civil War, the company played a vital role in providing delivery services for the federal government, establishing itself as a reliable and secure entity. By the late 19th century, American Express expanded into financial products, introducing innovations such as Money Orders and Travelers Cheques, marking a strategic shift towards financial services and laying the groundwork for global expansion.

In 1918, the U.S. government consolidated the express delivery industry, prompting American Express to pivot away from its original business. This allowed the company to concentrate on its burgeoning travel and financial services divisions, leading to global expansion and the establishment of international offices. By the mid-20th century, American Express had firmly positioned itself in the financial services sector. The introduction of its first Charge Card in 1958 revolutionized personal finance and reinforced the company's standing as a trusted name in consumer financial services.

Continuing its adaptability, American Express embraced new technologies, such as the magnetic stripe in the late 20th century, significantly enhancing the speed and security of card transactions. In the 1980s, the company demonstrated its commitment to social responsibility through a marketing campaign that raised funds for the restoration of the Statue of Liberty. The subsequent decade saw American Express embrace the digital era with the launch of its first online service, enabling customers to manage their accounts electronically.

From the late 1990s to the present day, American Express has evolved in response to digital advancements and evolving customer requirements, diversifying its financial products and broadening its customer base. The early 2000s presented new challenges, including the 2008 financial crisis, which American Express navigated successfully due to its robust business model. Throughout the 2010s, the company embraced emerging technologies, streamlining its offerings to enhance customer experiences and remain at the forefront of a rapidly evolving digital landscape.

American Express quickly changed with the times during the most recent worldwide COVID-19 outbreak, prioritizing e-commerce and contactless payment methods. As part of its long-term strategy, the company has amplified its commitment to sustainability and environmental, social, and governance (ESG) initiatives, pledging to reduce its environmental impact while promoting diversity and inclusion across its operations.

Today, American Express remains a global leader in financial services, renowned for its innovation, resilience, and dedication to delivering exceptional value to its customers. Its transformation from an express delivery firm to a trailblazer in global payments reflects its enduring capacity to adapt and prosper in a perpetually changing industry.

Revolutionary Business Model

Integrated Payments Platform and Technology

American Express has a payments platform that connects cardholders and merchants by issuing cards, handling merchant transactions, and operating a card network. This approach allows the company to build direct relationships with customers and merchants and use data analysis to assess risk, reduce fraud, and target marketing.

The company offers products and services globally, focusing on design and digital solutions to improve customer experience. It targets millennials, Gen Z, and small to mid-sized enterprises (SMEs) by providing checking accounts, B2B payment solutions, and cash flow management tools. Through its GMNS segment, Amex works with merchants worldwide to increase card acceptance and engagement and provide fraud prevention and marketing tools.

Amex partners with third-party banks and institutions to issue local currency Amex-branded cards and act as merchant acquirers, expanding its global payments network. The company collaborates closely with merchants to encourage card members to spend, supporting initiatives like Shop Small.

Diverse Customer Base and Global Footprint

American Express boasts a large and diverse global clientele, with its exceptional market position and strong revenue generation largely driven by the loyalty and engagement of its customer base.

The accompanying chart provides a breakdown of American Express's worldwide performance for FY 2023 across different business segments. The largest contributor is U.S. Consumer Services, which holds the highest share of total activity. This segment's significance highlights American Express's dominant position in the U.S. consumer market.

American Express's Commercial Services segment, notably SMEs and large corporations, is strong. At the same time, International Card Services, despite being smaller than its U.S. counterpart, highlights the company's global footprint and the significance of international markets in its overall strategy.

Finally, the Processed Volumes portion suggests transactions that may not fall directly under any specific segment but still contribute to the overall volume. These could include network activities or third-party-related services, showcasing a diversified revenue base.

Spend-Centric Business Model

American Express's business model drives spending on its cards, offering merchants value through loyal customers and significant transactions. High spending and annual fees fund rewards and benefits, while personalized strategies encourage further spending. This cycle of spending, rewards, and incentives strengthens customer loyalty, enhances merchant relationships, and ensures sustainable growth, positioning Amex as a leader in both customer experience and merchant services.

Financial Performance and Stability

A Decade of Revenue Growth

Over the past decade, American Express has demonstrated steady growth with a few notable shifts. The most significant development has been the sharp rise in revenue in recent years, particularly between 2020 and 2023. After facing a dip in 2020, likely due to widespread disruptions, the company made a strong recovery, reaching new heights by 2023.

The increasing trend, which has driven revenue far above pre-disruption levels, demonstrates American Express's tenacity and the accomplishment of its strategic efforts. The surge after 2020 stood out as the company effectively capitalized on evolving market conditions, proving its ability to adapt and grow, even in challenging times. This consistent rise reflects a foundation of strong business fundamentals, positioning Amex for further success in the future.

Diverse Revenue Streams

American Express generates revenue from multiple sources, with discount revenue from merchant fees being the largest contributor. Net card fees have risen as well, reflecting strong customer loyalty and successful cardholder acquisition. Service fees, travel commissions, and other revenues have also seen steady growth.

These non-interest revenues grew from $27.93 billion in 2013 to $47.38 billion in 2023. This substantial growth reflects the company’s strong recovery and strategic initiatives. In parallel, the company's net interest income has also grown significantly, underscoring its effective management of lending and borrowing operations, further contributing to its overall revenue expansion.

Understanding American Express's Operating Segments

American Express’s revenue growth in the last 10 years has been driven by several key operating segments, each contributing to the company’s diversified business model. Amex has modified its operating segment reporting over time to better reflect changing market conditions and give a more precise picture of its strategic orientation. Combining similar segments in the chart provides a clearer understanding of the company's strategic shifts and growth trajectories over the past decade.

The U.S. Consumer and Commercial Services segment, which focuses on delivering credit card services to individual consumers and businesses within the U.S., has emerged as the largest revenue contributor in recent years. This shift underscores the growing strength of American Express’s domestic market, where demand for both personal and commercial credit solutions remains robust.

The Global Consumer, Small Business Group, and Commercial Services segment historically drove significant revenue until 2019, but its contribution has declined in recent years due to changes in the company's strategic focus. Other segments have seen increased influence in balancing this decline.

The Global Merchant and Network Services segment is crucial for expanding American Express’s global network of merchants and reinforcing its position as a major payments processor. Meanwhile, the International Consumer and Network Services segment concentrates on expanding card usage and services beyond the U.S.

From 2021 to 2023, all segments experienced accelerating revenue growth, driven by increased consumer spending and global economic recovery. This highlights American Express's ability to leverage its strong domestic base and expand internationally, ensuring a resilient business model. Corporate & Other's growing role suggests the company is tapping into new areas for diversification and potential growth.

Geographic Revenue Analysis

From 2013 to 2023, the United States remained American Express’s largest and most stable market, consistently driving growth through a strong economy and strategic initiatives. In the Europe, the Middle East, and Africa (EMEA) region, steady growth reflected successful market penetration and increased digital adoption, particularly after the pandemic. The Asia-Pacific (APAC) region saw growth despite mid-decade fluctuations, with strong performance in markets like China and Australia.

While Latin America, Canada, and the Caribbean (LACC) initially faced revenue declines, they later rebounded due to effective stabilization strategies. Overall, American Express's U.S. market leads in revenue, while international markets, particularly EMEA and APAC, show promising growth. LACC’s recovery further highlights American Express’s adaptability and balanced global revenue diversification.

Card Member Receivables

These receivables are a key financial asset for American Express. They reflect the value of credit extended to cardholders and serve as a measure of lending activity and cash flow potential. Changes in receivables indicate shifts in card usage, payment behavior, and economic conditions.

American Express's reporting of card member receivables has evolved to align with its changing business model and customer demographics. By 2021, the company transitioned to reporting under the Consumer, Small Business, and Corporate segments to provide a clearer reflection of its customer base and revenue drivers. The data in the graph below was consolidated into two primary categories for consistency in analysis and historical comparisons. Consumer Services cover personal credit card receivables from individual cardholders, while Commercial Services encompass receivables from Small Business and Corporate segments, including credit cards for business expenses.

Over the past decade, receivables have consistently grown across both segments, with Commercial Services experiencing more fluctuations, particularly post-2017. While the pandemic caused a dip in 2020, Commercial Services rebounded strongly, highlighting its growing importance to American Express's business. Meanwhile, Consumer Services showed steady, moderate growth, indicating stable demand. This suggests Amex is increasingly leveraging its commercial segment to drive growth, particularly in the corporate and small business sectors.

Market Position

Financial Services Corporation Sector: Market Overview

The financial services industry, particularly in payment cards, is evolving with the rise of e-commerce and advancements in digital technology. While traditional credit cards remain vital, the growth of digital payments, such as e-wallets and contactless payments, is reshaping the landscape.

The credit card industry is expected to grow, with transaction values projected to increase from $14.31 trillion in 2024 to $17.14 trillion by 2029 at a compound annual growth rate (CAGR) of 3.67%. American Express, known for its focus on higher-income customers, is well-positioned to benefit from this growth, especially as credit card usage remains strong among affluent households and business clients. In 2023, average credit card debt per borrower rose to $5,474, with higher-income and college-educated individuals—a key demographic for Amex—more likely to use credit cards.

Globally, the credit card market remains competitive, with companies striving to innovate. Amex must continue leveraging its brand reputation, customer loyalty, and unique rewards programs to maintain its competitive edge. Demand for secure, accessible credit options is fueling industry growth, while technological advancements like blockchain and digital wallets offer new opportunities for enhancing customer experiences and ensuring transaction security.

Credit Card Networks' Market Share Analysis

Credit card processors are critical in shaping how consumers and businesses engage in commerce. Recent industry analyses provide vital insights into emerging trends and market shares relevant to investors.

Card Networks' Share of Active Cards

Visa stands out as the leading card processor in the U.S., suggesting its wide acceptance and popularity among consumers. Mastercard follows closely behind, cementing its position as another major player in the global payment ecosystem. In contrast, American Express and Discover occupy much smaller portions of the market, with Amex maintaining a niche presence by targeting affluent consumers through exclusive services.

Number of Cards in Circulation

Over the past decade, American Express has expanded its card base from 107 million in 2013 to 141 million in 2023, reflecting steady growth despite its focus on a more selective clientele. This growth has been supported by a consistent rise in average spending on its proprietary card memberships. Following a pandemic-induced dip in 2020, spending rebounded sharply, underscoring American Express's ability to capitalize on its premium customer base.

American Express has consistently maintained a smaller card base than its competitors, Visa and Mastercard. The company's strategy of prioritizing high-value customers over card volume allows it to maximize revenue through exclusive services tailored to this niche market, reinforcing its position as a leading premium financial services provider.

U.S. Credit Card Transactions

In 2023, credit card transactions in the U.S. totaled approximately 53.8 billion. Although American Express accounts for a smaller share of these transactions, its focus on corporate and higher-income clientele ensures higher spending per cardholder. This is driven by its attractive rewards programs and premium services, which appeal to its selective customer base.

Transaction Power

Visa and Mastercard dominate the global payment ecosystem, primarily due to their extensive networks and widespread merchant acceptance. Their success is built on the sheer volume of transactions they handle, leveraging their global reach to serve a vast number of cardholders. This dominance is driven by their focus on processing a high number of transactions across diverse markets, prioritizing scale and accessibility.

American Express distinguishes itself by focusing on higher per-transaction values rather than sheer volume. By offering premium services and personalized products, the company manages to maintain strong total transaction volumes, even with fewer transactions overall compared to its competitors. Targeting affluent consumers and corporate clients allows Amex to tap into the substantial spending power of this niche audience, reinforcing its competitive position in the financial services industry.

Although American Express has seen slower growth in the number of transactions it handles compared to its competitors, its focus on high merchant fees and an exclusive customer base ensures its status as a leader in the premium financial market. This strategy enables Amex to sustain significant transaction value, reinforcing its position as a high-end service provider despite a smaller overall cardholder base.

Competitive Advantages

Issuer and Network Integration

In the credit card industry, issuers and networks typically have distinct roles: issuers like Chase and Citibank manage customer relationships and credit, while networks like Visa and Mastercard process transactions. What sets American Express apart is its ability to operate as both an issuer and a network, giving it complete control over the customer experience. This dual role allows Amex to streamline operations, offer more tailored services, and capture a larger share of transaction-related revenue, reinforcing its competitive edge against larger, more volume-focused competitors.

The Closed-Loop Network

American Express stands out in the credit card industry with its closed-loop network, managing both card issuance and transactions internally. This structure allows Amex to gather detailed spending data, customize offers, and generate direct income from interest and merchant fees. In 2023, Amex reported $13 billion in net interest income and over $33 billion from merchant fees, as wealthy clientele using Amex cards spend three times more annually than non-members. The company’s investment in rewards and services—totaling $19 billion in 2023—further enhances cardholder loyalty and usage.

Efforts to attract younger generations have been successful, with 60% of new cardholders in 2023 coming from Gen Z and millennials. Internationally, Amex is also expanding, gaining approvals in key markets like China and boosting credit card adoption across Europe. Despite strong competition, American Express's unique closed-loop system and focus on high-spending customers position it for long-term growth.

Navigating the Competition

American Express operates in a highly competitive environment alongside industry giants Visa and Mastercard, whose cards are accepted in over 200 countries and territories. Discover, another key player in the industry, follows a similar model to Amex by functioning as both a network and an issuer, though its global reach and influence remain smaller.

The following insights explore the distinct financial landscapes and competitive strengths that differentiate Amex from its peers:

Revenue Trajectory

American Express has demonstrated strong revenue growth, particularly in its recovery from the economic challenges brought on by the pandemic. Between 2020 and 2023, Amex expanded its market presence, driven by its ability to generate revenue from merchant fees, cardholder spending, and interest income. This positions Amex uniquely compared to Visa and Mastercard, which primarily focus on transaction processing. Discover, while a competitor, follows a more conservative growth trajectory, setting Amex apart with its diversified revenue streams.

Operating Income and Margin Comparison

American Express has consistently delivered substantial operating income, peaking at $10.69 billion in 2021 and maintaining strong results through 2023. Although the pandemic led to a dip in 2020, Amex quickly rebounded, reflecting its financial resilience and effective cost management. While its operating margins may be lower than Visa's and Mastercard's, its emphasis on premium cardholders and merchant relationships continues to drive strong operating income.

Net Income and Margin Comparison

American Express has posted stable net income figures, even during challenging periods like 2020, and its net margin remained strong in 2021, continuing through 2023. Visa and Mastercard similarly demonstrate strong net income, but Discover's results have been more variable. American Express’s consistent financial performance, despite industry challenges, underscores its ability to manage costs effectively and sustain profitability.

Growth Drivers for American Express

International Expansion

American Express has been extending its services in emerging markets like India and China by forming strategic alliances with local banks and service providers. Through partnerships and joint ventures, such as with Express (Hangzhou) Technology Services Co., Ltd., Amex has been able to process transactions in local currencies and navigate regulatory landscapes. Its global reach continues to grow, with more than 89 million locations accepting Amex cards worldwide. By tailoring its services to local markets and expanding digital offerings, Amex is well-positioned to capture the rising consumer spending in these key regions.

Strategic Partnerships and Acquisitions

American Express has strengthened its position through strategic partnerships with major brands like British Airways, Delta Air Lines, and Hilton, offering co-branded credit cards with customized benefits for cardholders. It has also formed digital partnerships with companies like PayPal and Microsoft, integrating advanced technology to improve payment experiences and streamline business processes. Additionally, acquisitions such as Mezi, Resy, and Kabbage have expanded American Express’s digital and commercial offerings, allowing the company to deliver more value across various industries.

Digital Transformation Initiatives

American Express continues to lead in digital innovation, enhancing mobile payment options and expanding support for digital wallets. Features like AutoPay, Plan It, and Amex Offers provide seamless experiences for cardholders. The company is also investing in emerging technologies like blockchain and big data analytics while aligning its growth strategies with ESG principles. By focusing on digital transformation and commercial service expansion, Amex is poised to remain at the forefront of the evolving financial landscape.

Flagship Products

Premium Credit Cards

American Express's premium credit cards are designed for high-net-worth individuals and offer luxury, exclusivity, and top-tier benefits. Key offerings include the Platinum Card, Gold Card, and Centurion Card. These cards provide exceptional travel perks, rewards programs, and personalized services, catering to customers who seek superior experiences. The Centurion Card, in particular, serves as the flagship of American Express’s premium line, epitomizing exclusivity and prestige.

American Express Centurion Card

Introduced in 1999, the American Express Centurion Card, or Black Card, represents the pinnacle of American Express’s premium offerings. This invite-only card is available to select individuals with substantial annual spending and a high net worth. With a $10,000 initiation fee and a $5,000 annual fee, the Centurion Card is one of the most expensive cards in the market. It offers tailored benefits, including personalized concierge services, luxury travel perks, access to exclusive events, and dedicated account management. The Centurion Card has grown significantly, evolving to offer even more exclusive benefits and expanded global privileges, making it a major revenue driver and a key component of American Express’s luxury brand positioning.

American Express Services

American Express offers a wide range of services aimed at enhancing the customer experience. These include Travel Services, American Express Offers, robust fraud protection and security measures, and innovative digital tools. A standout service is the Membership Rewards Program, which provides valuable rewards and flexible redemption options for cardholders, contributing to American Express’s reputation for premium service and customer loyalty.

The Membership Rewards Program

Launched in 1991, the Membership Rewards Program was created to reward cardholders with points for every dollar spent. Over time, the program has expanded its partnerships and redemption options, allowing customers to use points for travel, merchandise, and more. This flexibility, combined with the ability to transfer points to airline and hotel loyalty programs, has made it one of the most appealing loyalty programs in the industry. The program not only enhances the customer experience but also drives higher spending and boosts American Express’s revenue, solidifying its leadership in the financial services sector.

Digital Innovations

American Express has embraced digital transformation to enhance its offerings and improve customer experience. This commitment includes adopting advanced technologies such as AI, big data analytics, and digital wallets to streamline services and offer personalized, real-time solutions. American Express's use of AI, for example, has enabled the company to provide tailored recommendations, improve fraud detection, and deliver seamless customer support through automated tools.

AI-Powered Insights

American Express began integrating AI in the early 2010s, initially applying it to enhance fraud detection and risk management. Since then, AI's role has expanded to support business growth and optimize customer experiences. By analyzing customer behavior and predicting needs, AI enables Amex to deliver highly personalized recommendations, boosting customer satisfaction. Additionally, automation of processes, such as customer service, has improved operational efficiency. Today, AI-driven insights play a pivotal role in shaping marketing strategies and enhancing real-time service delivery, contributing to increased revenue and customer loyalty.

Leadership

American Express’s leadership team, under the direction of CEO Stephen J. Squeri, drives the company forward with a combination of deep industry experience and innovative strategies. Squeri, who became CEO in 2018, has focused on modernizing the company, expanding its global footprint, and reinforcing its premium brand. His leadership has been pivotal in driving American Express’s digital transformation, strengthening loyalty programs, and increasing the company’s presence in the corporate card and small business markets.

Stephen J. Squeri: Chairman and CEO

Since taking over as CEO, Stephen J. Squeri has steered American Express into the digital age, focusing on mobile payments, digital platforms, and partnerships with tech giants. His leadership has reinforced American Express’s premium status by expanding rewards programs and forming strategic partnerships with luxury brands, catering to both affluent customers and a younger, tech-savvy audience. Squeri has also overseen significant international expansion and corporate card growth while emphasizing sustainability and corporate responsibility. His long-term vision includes deepening the company’s digital transformation, enhancing customer loyalty, and diversifying revenue streams through business services and integrated financial solutions.

Key Leaders

Alongside Squeri, key members of the leadership team contribute significantly to American Express’s success. Leaders like Denise Pickett (President, Global Services Group) and Anré Williams (Chief Executive Officer, American Express National Bank) bring decades of institutional knowledge, helping to maintain high service standards across the company. Newer executives like Anna Marrs (Group President, Global Commercial Services and Credit & Fraud Risk) bring a fresh perspective, particularly in the areas of digital transformation and commercial services, which are critical for the company’s growth. This blend of experienced leadership and innovative thinking ensures that American Express remains a leader in financial services and continues to push boundaries in customer experience and technological advancement.

Executive Compensation Structure

American Express's executive compensation is strongly tied to performance incentives, with bonuses and stock awards linked to financial targets, operational efficiency, and long-term value creation. This structure aligns the financial success of key executives, including CEO Stephen Squeri, CFO C.Y. Le Caillec, and Vice Chairman Douglas Buckminster, with the company’s market performance, encouraging a long-term leadership approach.

By emphasizing stock awards and performance-based bonuses, Amex motivates its leaders to focus on sustainable growth and achieving corporate goals like revenue growth and customer engagement. This alignment with shareholder value ensures that the leadership team prioritizes both immediate financial performance and long-term stability. The balance and transparency of these packages help attract and retain top talent in the competitive financial services industry while mitigating short-term decision-making risks.

Risk Factors

American Express's 2023 annual report outlines several key risks, including strategic, operational, and market factors that could affect its financial health and operational stability.

Strategic, Business, and Market Risks

As a global financial services provider, American Express’s performance is intricately linked to the broader economic landscape, where shifts in economic stability directly affect its operations and profitability. Adverse conditions, such as geopolitical instability, natural disasters, and economic downturns, can significantly impact its profitability. The competitive payments industry also pressures Amex to maintain and grow its market share, while relationships with business partners—vital to its operations—pose risks of reputational damage, consolidations, or bankruptcies. Additionally, staying ahead in technological development and innovating new products is critical to the company's long-term success. Unfavorable market conditions, fluctuations in interest rates, and foreign exchange controls further influence its access to capital, earnings, and global operations.

Operational, Compliance, and Credit Risks

American Express faces operational risks, including cyber threats and fraud, which can lead to financial, legal, and reputational damage. The evolving regulatory landscape, coupled with potential legal actions and reliance on third-party providers, presents ongoing compliance challenges. Credit risks also remain a concern, particularly in relation to card member spending and customer payment capabilities. Furthermore, adhering to capital adequacy and liquidity requirements is essential to ensuring the company's financial health and mitigating disruptions.

Proactive Risk Management Measures

To mitigate these risks, American Express has implemented a series of proactive measures. In response to cybersecurity threats, the company has deployed advanced AI-driven fraud detection systems that monitor real-time transactions, strengthening security and reducing the risk of breaches.

American Express's ongoing investment in technological innovation plays a critical role in maintaining its competitiveness in the payments industry. This guarantees the business's agility in implementing new technologies and improving client interactions.

American Express’s compliance team plays a crucial role in navigating the complex and ever-changing regulatory environment, ensuring adherence to legal standards, and mitigating potential legal risks. Additionally, the company employs rigorous credit risk management practices, which include thorough assessments of cardholder creditworthiness and strict screening processes to minimize defaults.

To manage market-related risks, Amex actively employs strategies such as currency hedging and financial planning, ensuring that fluctuations in interest rates and currency exchange rates have minimal impact on its earnings. The company also strongly adheres to capital adequacy and liquidity rules, ensuring long-term financial stability even during adverse market conditions.

In Summary

With its first-rate services and dual function as a network and issuer, American Express dominates the credit card market, generating robust earnings and broadening its income sources. Its post-pandemic rebound demonstrates resilience, making it a well-rounded investment with substantial growth potential. American Express's strong financial health, innovation, and global expansion efforts position it for future growth, while its unique blend of prestige and resilience solidifies its status as a long-term investment option. The company's focus on digital capabilities and expanding its merchant network aligns with the evolving payment landscape, suggesting promising returns for investors who value sustainable growth.

The following data snapshots are as of 09/18/2024 from tradingview website

Key Stats

Performance since IPO

Financial Statements

Income Statement

Balance Sheet

Cash Flow

Statistics

Unlock the power of compounding

We are changing the way that people build wealth. If your portfolio is performing below S&P 500 in the last 5 years, then you need to subscribe here. Discover remarkable stories directly to your inbox. As a subscriber, you'll receive the valuable recommendation of an exceptionally outstanding company that are designed to help you build wealth.

Gain access to exclusive benefits by subscribing today!

Investment Thesis: Costco

This is our first idea, we think this exceptionally outstanding business is a good place to start our journey. We believe that it is an excellent choice for a long-term investment that can yield satisfactory returns.

Investment Thesis: Google

This issue’s recommendation is one of the innovative technology companies of our generation. It has a long history of developing new products and services that have become essential parts of our lives. We believe it is an excellent choice for a long-term investment that can yield satisfactory returns.

Investment Thesis: Master Card

This issue’s recommendation is one of the best companies from payment technology with a great innovating product and a global reach. We believe that it is an excellent choice for a long-term investment that can yield satisfactory returns.

Explore Our Past Recommendations