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Earnings Preview: American Express

> In addition, the firm thinks that American Express is more vulnerable than its peers to credit market fluctuations because its deposit base is smaller than those of other card issuers.

American Express' model is spend-centric. While they don't discourage customers from carrying a balance, their model centers on getting them to spend big and capturing the economic value from the interchange fees. Their superprime customers are less likely to carry large balances over long terms anyway.

Year to Date Performance of Dow 30 Members

Any votes for the stocks which have lost over 15% but don't deserve the punishment? I vote American Express and Pfizer. Pfizer's pipeline may look dry, but they have the financial clout to partner anyone with a hot drug, or to buy them outright. American Express' problems are overstated, I think.

What Should We Make of Warren Buffett's Stake in Mega-Financials?

for the record, Capital One (COF) is no longer rated as wide moat. has it been dropped from WMW?

I do think Capital One is a buy at today's price, and I think it can widen its moat over time. actually, it was upgraded to wide moat not too long ago, and then downgraded after the credit crisis.

American Express: Watch the Dividend

George, BRK.A does not and has never paid a dividend. Buffett has said that he would prefer share buybacks, as they are more tax efficient. He also believes that Berkshire would best make use of its cash by holding it for acquisitions and investments. I'd like them to pay a dividend someday, but I don't think he'll do that as long as he lives.