This Top Warren Buffett Stock Faces a Big Competitive Risk: Here's Why Investors Shouldn't Worry.

Core Insights - Berkshire Hathaway's portfolio includes high-quality companies, but investments are not guaranteed to succeed due to competitive risks [1] - American Express is experiencing significant revenue growth despite potential threats from innovations like BNPL and stablecoins [4] Group 1: Industry Developments - The payments industry has seen the rise of fintech services such as buy now, pay later (BNPL) and stablecoins, appealing to younger consumers and merchants [2] - Major payment processing companies like PayPal, Fiserv, and Stripe are adopting stablecoins, supported by favorable legislation from the Genius Act in 2025 [3] Group 2: American Express Performance - American Express generated $9.9 billion in revenue from merchants and $2.6 billion from card membership fees in Q4 2025, with double-digit growth in revenue and earnings per share reported last year [4] - The brand loyalty among high-income consumers allows American Express to charge higher processing fees to merchants [5] - American Express is successfully attracting younger customers, with millennials and Gen Z now making up the largest share of U.S. consumer spending [6]