How could American Express's fee increase affect Berkshire Hathaway's investment?
Berkshire Hathaway's stake may benefit from Amex's higher quarterly profits The transition of Platinum Card members to higher fees allowed American Express to see profits rise sharply in the third quarter. Net card fees increased by more than $400 million compared to a year earlier, contributing to the company's overall financial strength. Since Berkshire Hathaway holds a substantial, long-term equity stake in American Express, the reported rise in Amex's revenue and profits directly increases the value of that core holding within the conglomerate's portfolio.
- Effect
- Mild positive
- How direct
- Brind's reasoning
- When
- Over the long term
- The story
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How it reaches Berkshire Hathaway
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American Express increased the annual fee for its Platinum Card members on October 23, 2026. The company reported a third-quarter profit of $3.71 billion, which was up 28% from the previous year. This rise was supported by nearly all customers keeping the card despite the fee increase, and net card fees rising by over $400 million compared to a year earlier.
The full event1independent outlet -
Berkshire Hathaway maintains a substantial, long-term equity stake in American Express. Therefore, the reported increase in American Express's quarterly profits and revenue directly increases the value of this core holding in the conglomerate's portfolio.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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American multinational conglomerate holding company
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The facts so far
As reported. Each one links to where it comes from.
- American Express saw its profits rise sharply in the third quarter, reporting a profit of $3.71 billion, up 28% from a year ago.bozemandailychronicle.com
- Net card fees rose by more than $400 million compared to a year earlier.bozemandailychronicle.com
Why it matters
Berkshire Hathaway's investment in American Express is a core holding in the conglomerate's portfolio. The financial health and profitability of American Express are therefore significant factors in determining the overall value and performance of Berkshire Hathaway's holdings.
American Express's ability to successfully transition customers to higher fees while maintaining high spending levels demonstrates the resilience and strength of its business model. This success, coupled with rising profits, reinforces its position as a high-quality business for long-term investors.
What we don't know yet
- Will American Express continue to raise fees or adjust its pricing structure in the future?
- How will inflation and rising fuel prices continue to affect customer spending patterns?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.