Berkshire Hathaway to Hold American Express for Decades Due to Its Attractive Rewards Program

American Express has been a staple holding in Warren Buffett's Berkshire Hathaway portfolio for nearly 40 years, and experts predict it will continue to be held under his successor, Greg Abel. The reason behind this prediction is American Express's highly appealing rewards program that attracts new cardholders from younger generations.

In the second quarter of 2026, millennials accounted for 31% of spending volumes among individual consumers, while Gen Zers showed a 40% year-over-year spending growth. This cross-generational engagement is crucial for American Express's success, and it offers something above and beyond its competitors.

For the six months ended June 30, American Express generated $19.68 billion in discount revenue, which it can use to offer generous perks to card members that cost nearly twice what members pay in annual fees. This cycle of offering rewards and generating discount revenue repeats itself, making American Express's business model highly attractive.

Despite the economic pressure on consumer spending, American Express is guiding for double-digit revenue growth and record earnings in 2026, making it a great buy now according to experts.