Top 1%
Buffet ownes a large chunk of Amex, I'm not sure exactly why. They seem to be disapointing and all this bad credit frenzy can't be doing too much good for a great brand in a highly competitive market. Def. not on my short list of buys.
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Top 67%
eluzix
Oct 14 2007 at 12:31 ET
But isn't Buffet a long term investor? Maybe he expect the credit market to keep on growing? Buying (and spending money) is one of America's building blocks, can't believe they will change their ways in the future.
Top 1%
blacktuna
Oct 14 2007 at 12:35 ET
I think that with the amount of stock he has, he is also getting huge dividends.. but i still don't see that big an upside in American Express.. why not sell and by again in 5 years...
Top 4%
Walter
Oct 14 2007 at 6:14 ET
buffet is not known for short term investing. I guess one could add to your comment that PTR shot up at leat 15% in the 10 days after buffet sold large stakes in it. however - I Berkshire Hathaway are probably one of the better places to put your money. I'm not selling my BRK shares at this point.
Top 1%
blacktuna
Oct 14 2007 at 6:27 ET
yeah, buffet is long term, but he's very old school as far as evaluating companies.. what's the point of sticking with Amex through hard times when he can sell and pick it back up when things look better...
Top 1%
blacktuna
Oct 14 2007 at 6:29 ET
btw... buffet is 80 years old... if he leaves BRK (literally) stock will drop severely... i think it's a dangerous position.