Amid the rapid changes in the business landscape, the market is closely watching various innovative developments. As key components of the Berkshire Hathaway portfolio, stocks favored by Buffett are typically admired for their exceptional quality. However, this does not mean the investments are without risk; in-depth analysis still requires considering potential adverse variables.
Currently, a Buffett top holding that accounts for over 16% of Berkshire’s portfolio is facing significant competitive pressure. But multiple indicators suggest investors need not be overly concerned for now.
In recent years, the two most notable development trends in the payment industry have been the rise of fintech services like “Buy Now, Pay Later” (BNPL) and the emergence of stablecoins. BNPL primarily attracts younger consumers unwilling to take on credit card debt, while stablecoins, with their advantages of fast and low-cost transfers, have drawn the attention of merchants seeking to avoid transaction fees.
Well-known payment processing companies such as PayPal, Fiserv, and Stripe have already issued or begun accepting stablecoin payments.
Although BNPL and stablecoins could pose potential competitive threats to American Express (AXP)—a top Buffett holding that generated $9.9 billion in revenue from merchants in the fourth quarter of 2025 and collected $2.6 billion in card membership fees—its performance remains strong. The latest financial report shows the company achieved double-digit growth in both revenue and earnings per share last year, with expectations to maintain a similar growth rate in 2026 and over the long term.
American Express continues to create value for its users, with cardholders showing a strong sense of brand loyalty, particularly favoring its premium membership benefits and rewards programs. Since its services primarily target high-income groups, merchants are willing to pay higher processing fees to capture these sales opportunities.
Regarding the BNPL sector, one key reason investors need not be overly concerned is American Express’s notable success in attracting younger clients. Chief Financial Officer Christophe Le Caillec stated during the latest earnings call: “As of the fourth quarter, Millennial and Gen Z customers accounted for the largest share of U.S. consumer spending and remained the fastest-growing customer segments.”
American Express is not resting on its laurels. The company is exploring development opportunities related to stablecoins, and CEO Steve Squeri has acknowledged their potential application in specific payment scenarios.
Investors should continue to monitor the developments of BNPL and stablecoins. For now, however, shareholders of American Express need not be overly anxious. While maintaining its core strengths, the company is actively adapting to innovative trends in the payment industry, with its solid financial performance and clear growth trajectory providing a strong foundation to address competitive challenges.
Amid the rapidly evolving wave of fintech, the adaptability and strategic resilience demonstrated by this established payment giant may well be key to its sustained market confidence.
