Financial Performance - Mastercard's net revenue for Q3 2025 reached $8.602 billion, a 17% increase year-over-year, or 15% on a currency-neutral basis[3] - Adjusted operating expenses totaled $3.459 billion, up 15% year-over-year, or 14% on a currency-neutral basis[3] - Adjusted operating income was $5.144 billion, reflecting an 18% increase year-over-year, or 15% on a currency-neutral basis[3] - Adjusted net income amounted to $3.961 billion, a 10% increase year-over-year, or 8% on a currency-neutral basis[3] - Adjusted diluted EPS was $4.38, a 13% increase year-over-year, or 11% on a currency-neutral basis, which includes a $0.10 contribution from share repurchases[3, 9] Volume and Transaction Growth - Worldwide Gross Dollar Volume (GDV) increased by 9% year-over-year in local currency[14] - Switched transactions grew by 10% year-over-year[20] - Cross-border volume increased by 15% globally[17] Revenue Breakdown - Payment Network net revenue increased by 10% on a currency-neutral basis[26] - Value-added Services and Solutions net revenue increased by 22% on a currency-neutral basis, with acquisitions contributing approximately 3 percentage points to this growth[27] Expense Management - Total Adjusted Operating Expenses increased 14% on a non-GAAP, currency-neutral basis, including a 4 percentage point impact from acquisitions[38] Capital Allocation - During the quarter, Mastercard repurchased $3.3 billion worth of stock, with an additional $1.2 billion repurchased through October 27, 2025[10]

Core Viewpoint - Berkshire Hathaway's asset composition has shifted, with controlled companies now exceeding public equity holdings, and cash and marketable securities surpassing stock investments [1] Company Overview - American Express remains a significant holding for Berkshire Hathaway, constituting 14.5% of its equity portfolio, second only to Apple [2] - The company has consistently outperformed the market over the long term, although it has underperformed the S&P 500 and Nasdaq Composite year to date [2] Business Model - American Express operates a unique business model compared to Visa and Mastercard, issuing its own cards and bearing the risk of defaults [4][7] - The company targets affluent customers, which allows for higher fees and greater spending potential, despite the inherent risks [7][8] Financial Performance - American Express has shown steady revenue and earnings growth, with a notable increase post-pandemic as it appeals to younger demographics [9] - The stock has declined 22.9% from its all-time high, presenting a potential buying opportunity for long-term investors [13] Valuation Metrics - The current price-to-earnings (P/E) ratio for American Express is 17.9, slightly below its five-year average of 18.4, indicating it may be undervalued [13] - The price-to-free cash flow ratio stands at 14.8, further suggesting that American Express is a good value [13] Share Buybacks - American Express has reduced its share count by 30% over the last decade, enhancing earnings per share (EPS) growth through buybacks [15][17] - The company has a history of significant dividend increases, with a recent 17% hike in its quarterly payout [17] Investment Thesis - American Express exemplifies quality over quantity in the payment processing sector, with affluent customers leading to higher average spending [19] - The stock is considered a strong buy amid broader market sell-offs, offering both value and passive income potential [20]