Yahoo Finance·2025-10-19 17:05Core Insights - American Express and Coca-Cola are significant holdings in Berkshire Hathaway's public equity portfolio, with American Express being the second-largest holding and Coca-Cola the fourth-largest [1]. Group 1: Performance Comparison - Over the last decade, American Express has delivered a total return of 228%, significantly outperforming Coca-Cola's 55% and the S&P 500's 106% [4]. - Coca-Cola's stock price has increased by only 35% over the last decade when excluding dividends [4]. Group 2: Business Model and Strategy - American Express operates as both a card issuer and payment processor, which is seen as a superior business model compared to Visa and Mastercard, which only act as payment processors [5]. - The company has a strong risk management track record, evidenced by its low net write-off rate [5]. - American Express offers high annual fees but compensates with generous rewards, spending about twice as much on cardholder rewards as it collects in fees, while making up for this through high merchant processing fees [6]. Group 3: Future Outlook - American Express is positioned for long-term growth due to its loyal customer base [8]. - Coca-Cola is gradually reducing its reliance on sugary soda, indicating a shift in its business strategy [8]. - Both companies are known for returning substantial cash to shareholders, including Berkshire Hathaway [8].