Core Insights - The American Express consumer is showing strong spending behavior, with billings growth accelerating in the second half of 2025 compared to the first half [1] Group 1: Consumer Spending Trends - Global consumer spending has been consistently strong throughout the year, ranging between 7% and 8% [2] - There was an uptick in spending in the second half of the year, indicating positive consumer confidence [2] - Travel and Entertainment spending has been particularly robust, with front-of-cabin spend increasing by 9% and lodging at luxury properties rising by 12% [2]

Core Insights - The quarter and year were strong for major payment companies, with Mastercard and American Express reporting significant revenue growth, yet their shares fell due to macroeconomic concerns [1][2]. Company Performance - Mastercard reported an 18% increase in net revenue for the fourth quarter year-over-year, translating to a 22% growth in net income, with adjusted earnings per share rising by 25% [4]. - American Express achieved a 10% revenue growth and a 15% increase in earnings per share for the fourth quarter, supported by share buybacks [6]. - Both companies experienced strong consumer spending, with Mastercard noting 4% growth in the U.S. and 9% internationally, while American Express reported a 9% increase in card member spending [3][7]. Macroeconomic Environment - Concerns regarding a potential 10% cap on credit card rates from the White House have created anxiety among investors, despite the lack of legal basis for such a cap [2]. - U.S. credit card debt has reached record highs, exceeding $1.2 trillion, with rising delinquency rates contributing to investor sensitivity [8]. Future Outlook - Mastercard's CEO expressed optimism about continued healthy consumer and business spending, projecting a promising environment for 2026 [5]. - American Express anticipates near-double-digit revenue growth for 2026 and announced a 16% increase in dividends, highlighting advancements in technology [7].

Core Viewpoint - American Express is expected to report strong fourth-quarter earnings, with a projected increase in both earnings per share and revenue compared to the previous year [1][2]. Financial Performance - Analysts anticipate fourth-quarter earnings of $3.54 per share, an increase from $3.04 per share in the same period last year [1]. - The consensus estimate for quarterly revenue is $18.88 billion, up from $17.18 billion reported last year [1]. Analyst Sentiment - The company has exceeded analyst revenue estimates in three consecutive quarters and in five of the last ten quarters overall [2]. - American Express shares rose by 0.4%, closing at $358.50 on Thursday [2].

Core Insights - The Value Fund achieved a return of +0.4% for 2025, significantly impacted by a -4.3% drag from currency headwinds due to a weakening U.S. dollar [1][2] - The fund underperformed compared to broader market indices, with the S&P/TSX returning +31.7%, S&P 500 +12.5%, and DJIA +9.7% [4][5] - The "Magnificent Seven" tech stocks contributed 42% of the S&P 500's gains, highlighting a concentration of performance among a few large-cap names [5] Currency and Market Dynamics - The fund maintains a long-term strategy of not hedging against currency fluctuations to avoid high transaction costs, despite short-term volatility [3] - The performance of the S&P 500 was driven by a few key companies, indicating a lack of broad market participation [4][5] Investment Philosophy - The fund emphasizes discipline in investment strategy, avoiding overvaluation despite market trends, and prioritizing capital preservation [7][8] - The fund's management acknowledges the challenges of being a value investor in a market characterized by high valuations and irrational risk-taking [9] Portfolio Performance - Alphabet Inc. was the top performer in 2025 with a return of +64.8%, driven by its strong position in web search and advancements in AI technology [15][20] - American Express contributed +24.7% to the fund, benefiting from strong revenue growth and a premium consumer base [21][22] - Compagnie Financière Richemont gained 41.8%, with positive sales growth in China and a strong luxury market position [23][24] Underperformers - Fiserv Inc. was the worst performer, declining by 67.3% due to deteriorating fundamentals and a reassessment of growth quality [27][28] - Lululemon Athletica fell 45.7%, facing challenges in growth sustainability and external shocks from U.S. trade policy [32][34] Strategic Adjustments - The fund has adopted a defensive posture entering 2026, with cash and equivalents representing 14.7% of the portfolio [14] - The fund actively managed its portfolio, selling out of four positions and initiating three new ones, reflecting a focus on valuation disparities [36] Future Outlook - The fund remains optimistic about Alphabet's future, citing its ability to leverage AI across its product suite and maintain a competitive edge [20] - The management team is focused on long-term ownership and disciplined investment strategies, with an average portfolio turnover of just 12.4% over the past five years [41]

Group 1 - American Express Company (NYSE:AXP) is often seen as a stock that experiences a decline after reporting earnings, which presents a buying opportunity for investors [1] - The company provides a range of services including credit and charge cards, payment processing, banking, and travel-related services, and is noted for its strength in the travel sector [2] - Despite concerns about the experiential economy, American Express remains a preferred choice for travel-related expenses, indicating its resilience in the market [2] Group 2 - There are suggestions that while American Express has potential, certain AI stocks may offer greater upside potential and less downside risk [3]

Core Viewpoint - American Express (AXP) has shown strong performance, with shares increasing by 18% since December 2024, outperforming the S&P 500 [1] Company Analysis - The investment philosophy emphasizes acquiring high-quality stocks and businesses led by disciplined capital allocators [1] - Companies that generate exceptional returns on capital and can compound invested capital over long periods are favored [1]

Core Viewpoint - American Express (AXP) has shown strong performance, with shares increasing by 18% since December 2024, outperforming the S&P 500 [1] Company Analysis - The investment philosophy emphasizes acquiring high-quality stocks and businesses led by disciplined capital allocators [1] - Companies that generate exceptional returns on capital and can compound invested capital over long periods are favored [1]

Group 1 - Pfizer has won a bidding war for the obesity drug developer Metsera, accepting a sweetened offer amid US antitrust risks from a competing bid by Novo Nordisk [1][4] - The value of the deal for Metsera could be as high as $10 billion, reflecting the competitive nature of the pharmaceutical market [4] - Shares of Metsera have declined by almost 15% following the announcement of the bid, while Pfizer's shares have remained stable [4] Group 2 - Dave Lewis, former CEO of Tesco, will take over as CEO of Dagio starting in 2026, indicating a significant leadership change for the company [2] - UPS and FedEx have grounded their fleet of over 50 McDonnell Douglas MD11 cargo planes following a fatal crash, raising safety concerns in the logistics industry [2] - Visa and Mastercard are nearing a settlement with merchants regarding credit card interchange fees after two decades of legal disputes, which could impact the financial services sector [2][3]

Core Insights - American Express Company (NYSE:AXP) is highlighted as a top stock by Jim Cramer, particularly for its card and loyalty offerings that appeal to younger users [2][3] - Cramer praises CEO Steve Squeri and reflects on missed opportunities to sell the stock during weaker periods, indicating a strong belief in the company's value proposition [2] - The loyalty program of American Express is noted as a standout feature that others in the market aspire to emulate, showcasing the company's perceived value [3] Company Performance - American Express consistently delivers strong quarterly results, countering skepticism about its performance [3] - The company is recognized for offering high-quality products that are perceived as valuable by consumers [3] Market Position - American Express is positioned as a leader in the payment and lifestyle services sector, with its loyalty program being a benchmark for competitors [2][3] - The company's ability to attract younger users through its offerings is a significant factor in its market appeal [2]

Core Insights - Dave Ramsey, a personal finance expert, transformed from a bankrupt individual to a debt-free millionaire, emphasizing the importance of living without debt [1][2][4]. Group 1: Background and Early Career - In the late 1980s, Ramsey had amassed a real estate portfolio worth $4 million by age 28, but faced bankruptcy when lenders called in $1.2 million in loans due to changes in banking laws [2]. - The inability to liquidate properties quickly led to his financial downfall, marking a significant turning point in his life [2]. Group 2: Personal Transformation - A pivotal moment for Ramsey was a call from American Express to his wife, which prompted him to swear off debt entirely and adopt a strict budget [3][4]. - He cut up his credit cards and committed to teaching his children and others about living debt-free [4]. Group 3: Rebuilding and Financial Philosophy - Following his bankruptcy, Ramsey and his family adopted a frugal lifestyle, driving an old car and saving aggressively to improve their financial situation [5]. - His experience motivated him to save money rapidly, reinforcing his philosophy of living within one's means [5].