sleepydragon Posted May 19, 2017 Share Posted May 19, 2017 https://www.bloomberg.com/news/articles/2017-05-19/berkshire-asks-fed-to-boost-cap-on-amex-ownership-to-almost-25 Link to comment Share on other sites More sharing options...
SlowAppreciation Posted October 18, 2017 Share Posted October 18, 2017 https://mobile.nytimes.com/2017/10/18/business/american-express-chenault-squeri.html?_r=0 Link to comment Share on other sites More sharing options...
SlowAppreciation Posted June 26, 2018 Share Posted June 26, 2018 https://www.wsj.com/articles/american-express-amazon-to-launch-co-branded-small-business-credit-card-1530018082?mod=hp_lista_pos5 Link to comment Share on other sites More sharing options...
bizaro86 Posted October 30, 2019 Share Posted October 30, 2019 Anybody worried about credit quality here? I recently got a new Amex charge card, and through a variety of circumstances ended up putting ~50% of my annual pre-tax income (which they knew because they asked when I applied) on it in the first month. It doesn't have a set limit, and I was very surprised they approved that much spend on a card with no history for a new client. I'm good for the money, but they didn't ask my net worth during the application process I don't think, and certainly didn't verify it. They did check my credit, which is good. Obviously the plural of anecdote isn't data, but I wouldn't have granted a file with the information they had on me that much credit if I was them... Maybe they're just smarter than me, as they probably made back the sign up bonus on swipe fees in the first week or so... Link to comment Share on other sites More sharing options...
gary17 Posted October 30, 2019 Share Posted October 30, 2019 there is a limit , it's not no limit. you can login and check 'spending power' in your account. they seem to have a formula based on your income, credit history, etc. Link to comment Share on other sites More sharing options...
Gregmal Posted October 30, 2019 Share Posted October 30, 2019 Ive noticed the above as well. For whatever reason it doesnt seem to be a widespread concern, but Ive run into people that I wouldn't issue an overnight payday loan for 10 points, that have unlimited AMEX charge cards. Link to comment Share on other sites More sharing options...
BG2008 Posted October 30, 2019 Share Posted October 30, 2019 Amex reached out to me on Linkedin a few years ago to offer me a business credit card. At the time, my business was smaller and there was not as much reported income. I wasn't getting approved by others for business credits cards which I needed for more streamlined tax reporting purposes. I guess they mine the Linkedin history and realized that I have been in business for a couple years. Since then, I periodically get these offers of $50k at 10% interest rate and no real loan underwriting process that you have to go through with a mortgage. It's hard to get excited about this when I just got refi at 3.5% on my real estate asset. But it is interesting that they do take a somewhat non-traditional approach to underwriting. I used to never understand why people use Amex. Now that I have been a platinum card member for a couple years, I love the Centurion Lounge at LGA and can't wait for the JFK one to open up. I hope the one year free offer form WeWork still works. Never bothered looking into it. I think they have the best app for saving credit card receipts. As I get older, I am starting to appreciate the allure of carrying an Amex card. Their customer service is much better. I want not allowed into a Delta Club one time because my wallet got stolen and I did not have the Platinum card on me. I called Amex to complain and they were just compassionate. I felt like a person and not a number. The Delta Club in Chicago can go f themselves turning away someone with a police report stating that my wallet got stolen. I could really use the lounge to unwind and relax that day. The AMEX people were wonderful when I called to complain and gave me a bunch of points. People remember stuff like this. More anecdotes not studies. Link to comment Share on other sites More sharing options...
CorpRaider Posted October 30, 2019 Share Posted October 30, 2019 Interesting stuff. Thanks for sharing. Link to comment Share on other sites More sharing options...
Spekulatius Posted October 30, 2019 Share Posted October 30, 2019 I don’t even have a business, but I have got Chase and Amex business cards. My wife has employee cards for both Link to comment Share on other sites More sharing options...
bizaro86 Posted October 30, 2019 Share Posted October 30, 2019 there is a limit , it's not no limit. you can login and check 'spending power' in your account. they seem to have a formula based on your income, credit history, etc. I'm sure there is a limit of some kind. I just haven't been able to find it, and I tried pretty hard... Link to comment Share on other sites More sharing options...
villainx Posted October 30, 2019 Share Posted October 30, 2019 Anybody worried about credit quality here? I recently got a new Amex charge card, and through a variety of circumstances ended up putting ~50% of my annual pre-tax income (which they knew because they asked when I applied) on it in the first month. It doesn't have a set limit, and I was very surprised they approved that much spend on a card with no history for a new client. I'm good for the money, but they didn't ask my net worth during the application process I don't think, and certainly didn't verify it. They did check my credit, which is good. Obviously the plural of anecdote isn't data, but I wouldn't have granted a file with the information they had on me that much credit if I was them... Maybe they're just smarter than me, as they probably made back the sign up bonus on swipe fees in the first week or so... Plus I assume you have to pay charges in full by the next billing cycle. Link to comment Share on other sites More sharing options...
bizaro86 Posted October 31, 2019 Share Posted October 31, 2019 Plus I assume you have to pay charges in full by the next billing cycle. Correct, that's the deal. I think if you don't pay they charge you some absurd interest rate. I'm honestly not sure what it is, as I'm going to pay... Link to comment Share on other sites More sharing options...
CorpRaider Posted October 31, 2019 Share Posted October 31, 2019 I keep thinking about this and tha valuation gap versus MA and V. Like, I get that there's a theory those networks are much larger so the network effects are stronger and no credit so less lumpy, but it also seems like they kind of have more large constituents pulling on their margins: a lot of big issuers on one side and then big merchants on the other. Seems like maybe Amex at least doesn't have to cut other banks in on the fees (to a large degree). From a quick search, it looks like amex has WAY fewer cards; let's say like 110 million versus like 1 billion cards each for MA and V; but the 2018 (U.S. only) spending statistics I see are AMEX had $775 billion versus $811 billion and $1.95 trillion for MA and V respectively (from annual reports pulled together in an article on credit card website/blog). I guess that was kind of Buffett's point in the 2018 and 2019 annual meetings...basically they dominate the higher end and spending per card and have the brand cachet/elite network that should help them navigate the changes in the future. Link to comment Share on other sites More sharing options...
coc Posted March 18, 2020 Share Posted March 18, 2020 AMEX is down about 50% from its high now. Thought I'd bring this back to the fore. Link to comment Share on other sites More sharing options...
nspo Posted March 18, 2020 Share Posted March 18, 2020 I got filled at $72. Should have a good chance of compounding at 12%+ over the next 5 years. Link to comment Share on other sites More sharing options...
treasurehunt Posted March 18, 2020 Share Posted March 18, 2020 I have been buying AXP as well. I believe their business model is more flexible than that of most financial institutions. Also, their loan book has relatively short duration, so they won't have to spend years taking charges for bad loans. Capital levels look good as well. AXP rebounded fast after the financial crisis. I am hoping for a repeat here. But I am okay holding for longer if the rebound is slower this time. Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 9, 2020 Share Posted May 9, 2020 Carlyle, GIC Back Out of Deal with American Express Travel https://finance.yahoo.com/news/carlyle-gic-backing-deal-american-141414042.html Link to comment Share on other sites More sharing options...
MVP444300 Posted May 9, 2020 Share Posted May 9, 2020 I have been buying AXP as well. I believe their business model is more flexible than that of most financial institutions. Also, their loan book has relatively short duration, so they won't have to spend years taking charges for bad loans. Capital levels look good as well. AXP rebounded fast after the financial crisis. I am hoping for a repeat here. But I am okay holding for longer if the rebound is slower this time. I bought AXP in 2009 when the company was around $14 per share and wish I had sold it when it was trading in $130 range.. I hope they are buying back aggressively at these levels (I would even be ok with them suspending dividends to buy back when it gets really cheap). Link to comment Share on other sites More sharing options...
mjs111 Posted May 9, 2020 Share Posted May 9, 2020 On the call it was announced that share buybacks were suspended at the moment. Mike Link to comment Share on other sites More sharing options...
MVP444300 Posted May 9, 2020 Share Posted May 9, 2020 One the call it was announced that share buybacks were suspended at the moment. Mike Figures! Better safe than sorry I guess. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 18, 2020 Share Posted August 18, 2020 American Express to Acquire Kabbage https://www.businesswire.com/news/home/20200817005350/en/American-Express-Acquire- Thanks Kabbage for approving my PPP quickly. Link to comment Share on other sites More sharing options...
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