Market Volatility Hits American Express Co

American Express Co’s stock has been feeling the pinch lately, and it’s not just due to internal factors. The company’s fortunes are closely tied to those of Warren Buffett’s Berkshire Hathaway, one of its largest shareholders. When Berkshire Hathaway’s stock takes a hit, American Express Co’s shares often follow suit.

In its latest earnings report, Berkshire Hathaway revealed a 3.8% decline in operating profit. This drop was largely attributed to underwhelming performance in its insurance operations, where underwriting earnings failed to meet expectations. To make matters worse, the company took a significant write-down on its investment in Kraft Heinz, a struggling food giant. This write-down had a ripple effect on Berkshire Hathaway’s overall net income, which took a hit as a result.

As a result, American Express Co’s stock price has also experienced a decline. Despite this, the company’s fundamentals remain strong, with a solid financial position and a loyal customer base. However, the connection to Berkshire Hathaway’s performance can’t be ignored. American Express Co’s investors are likely keeping a close eye on the conglomerate’s moves, waiting to see how the situation unfolds.

Here are some key takeaways from Berkshire Hathaway’s earnings report:

• 3.8% decline in operating profit
• Underwriting earnings in insurance operations were a major contributor to the decline
• Significant write-down on investment in Kraft Heinz
• Overall net income took a hit due to the write-down and underwhelming performance in insurance operations

While American Express Co’s stock may be experiencing a temporary setback, its long-term prospects remain bright. The company’s strong fundamentals and loyal customer base provide a solid foundation for future growth. However, investors will be keeping a close eye on Berkshire Hathaway’s performance, as the two companies are closely intertwined.