Key takeaways
- The premium card company's stock, owned by Berkshire Hathaway, has outperformed the S&P 500 index in the past five years.
- During the third quarter, American Express did bring in $4.9 billion in net interest income.
- American Express shares trade at a forward price-to-earnings ratio of 16.1.
Visa and Mastercard don't act as card issuers, which creates capital-light business models that generate significant profits. American Express holds loans on its balance sheet and must set aside provisions for credit losses, making it more economically sensitive.
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