In my last article about Microsoft Corporation ( MSFT ), I argued that the probabilities were shifting towards greater risk. While I didn’t see other Mag 7 stocks—like Meta Platforms, Inc. ( META ) orMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small c ...

Core Insights - American Express reported a 10% year-over-year increase in revenue and a 13% rise in net income for Q4 2025, indicating positive financial trends [1] Group 1: Brand and Network Effect - Berkshire Hathaway holds 22% of American Express shares, reflecting the company's strong economic moat [2] - American Express offers premium credit cards that attract affluent customers who value excellent service and rewards [3] - The company operates a robust transaction processing infrastructure with 153 million active cards and 160 million merchant locations, creating a powerful network effect [4] - The competitive position of American Express is expected to remain strong due to its high-quality business model [5] Group 2: Revenue Composition - In Q4, American Express generated $9.9 billion from merchants, accounting for about half of its revenue, and collected $2.6 billion from membership fees [6] - Only 24% of sales came from net interest income, reducing credit risk and cyclicality compared to industry peers [6] - The company's ability to attract higher-income customers supports a spend-centric model, with average card member spending exceeding $25,000 in 2025 [7] Group 3: Stock Performance and Valuation - American Express shares have delivered a total return of 641% over the past 10 years, driven by strong financial performance [8]

Core Insights - Warren Buffett's investment strategy focuses on acquiring businesses with economic moats, which provide durable competitive advantages [1] - The tech sector has become a significant area of investment for Buffett, with notable acquisitions including Apple, Amazon, and Alphabet [2][4] - Meta Platforms, despite its strong performance, was not included in Buffett's portfolio, which raises questions about his investment criteria [5][6] Group 1: Investment Philosophy - Buffett's approach emphasizes understanding a company's products, financials, industry landscape, and management before investing [6] - The concept of economic moats is central to Buffett's investment decisions, allowing companies to maintain competitive advantages over time [1] Group 2: Tech Sector Investments - Apple shares have increased by 966% over the past decade, while Amazon shares rose by 169% since Q1 2019, and Alphabet's stock grew by 39% since Q3 2025 [4] - These investments have proven successful, although the long-term impact of the Alphabet acquisition remains to be seen [4] Group 3: Meta Platforms Analysis - Meta Platforms has a significant economic moat, characterized by strong network effects from its social media applications [7] - The company reported 3.58 billion daily active users in Q4 2025, highlighting its vast user base and engagement potential [8] - Meta's ability to collect extensive data enhances its algorithmic capabilities, improving user engagement and advertising effectiveness [8]

Core Insights - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high levels of defensibility [1] Group 1: Investment Focus - The focus is on European and North American companies, without constraints regarding market capitalization, ranging from large cap to small cap [1] Group 2: Analyst Background - The analyst has an academic background in sociology, holding a Master's Degree in Sociology with an emphasis on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1]

During his time as CEO of Berkshire Hathaway, Warren Buffett directed capital allocation moves that propelled a 20% compound annual return. The Oracle of Omaha's success at managing the public equities portfolio was a big factor. Average investors should be looking at these holdings to find new ideas. Buffett is familiar with the restaurant sector, as Berkshire previously owned Restaurant Brands International. However, he never took a stake in Chipotle Mexican Grill (NYSE: CMG), a booming chain within the ...

Core Viewpoint - The analysis indicates an improved outlook for MSCI Inc. after a previously bearish stance, focusing on high-quality companies with competitive advantages and defensibility in the market [1]. Group 1: Company Analysis - MSCI Inc. is highlighted as a company that can outperform the market over the long term due to its economic moat and high levels of defensibility [1]. - The analysis emphasizes a focus on both European and North American companies, without constraints on market capitalization, ranging from large cap to small cap [1]. Group 2: Analyst Background - The analyst has a Master's Degree in Sociology with a focus on organizational and economic sociology, and a Bachelor's Degree in Sociology and History, providing a strong academic foundation for the analysis [1].

Core Insights - Costco Wholesale has seen its shares increase by 540% over the last decade, indicating strong long-term returns for investors [2] - The company's membership model has created a loyal customer base that values deals and convenience, often leading to higher total spending due to bulk purchases [2] Economic Context - As of 2026, U.S. consumers are facing budget constraints, a slowing job market, and economic uncertainty, particularly affecting middle-class families [3] - Despite a seemingly strong economy with inflation at 2.7% and GDP growth projected at 2.5%, the economic landscape is complex and requires careful analysis [4] Consumer Behavior - Consumer spending is primarily driven by higher-income shoppers, while middle- and lower-income groups are struggling, with rising home foreclosures and vehicle repossessions [5] - The average Costco shopper earns over $125,000 annually, indicating that this demographic has maintained spending power and prefers bulk buying for better value [6] Competitive Advantage - Costco's economic moat stems from its size and operational efficiency, allowing it to purchase products in large quantities and offer savings to consumers [7] - The retailer attracts customers with low-priced items, such as hot dog combos and rotisserie chicken, enhancing its appeal to frugal shoppers [7] - The company has a strong and expanding competitive moat, with customers willing to pay an annual fee for membership [8]

Group 1 - Sea Limited (SE) has significantly outperformed the S&P 500 and likely every global index over the last three years, despite a sharp decline in 2022 and the first half of 2023 [1] - The analysis emphasizes the importance of high-quality companies that can maintain a competitive advantage and high levels of defensibility for long-term market outperformance [1]

Core Insights - Warren Buffett's tenure as CEO of Berkshire Hathaway has concluded, but his investment in American Express remains significant for investors [1] - American Express shares have delivered a total return of 207% over the past five years, suggesting potential for retail investors to consider this financial stock [2] Company Overview - American Express is recognized for its strong economic moat, characterized by a premium brand in the card payments market, offering valuable perks and high annual fees that attract affluent customers [3] - The company connects 160 million merchant locations with 151 million active cards, creating a network effect that enhances the value of its ecosystem as it grows [4] - The competitive landscape appears favorable for American Express, with minimal threats from fintech innovations or traditional banking competitors [5] Financial Performance - American Express has demonstrated robust revenue and net income growth, with compound annual growth rates of 8.4% and 8.6% respectively from Q3 2015 to Q3 2025 [6] - The ongoing rise in spending activity and the shift towards noncash transactions are expected to support continued financial gains [6] Valuation Concerns - Despite the strong business fundamentals, the current valuation of American Express raises concerns, with a price-to-earnings ratio of 23.9, which is above its trailing five-year average [8] - The market sentiment remains optimistic about American Express, reflected in its premium valuation [8]

Core Insights - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high defensibility [1] Group 1: Company Analysis - Zoetis Inc. (ZTS) was previously covered in October 2021, but the stock was not deemed attractive due to extremely high valuation multiples [1] - The analysis emphasizes a focus on companies in Europe and North America, without constraints on market capitalization, ranging from large cap to small cap [1] Group 2: Analyst Background - The analyst has a Master's Degree in Sociology with a focus on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1]