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Warren Buffett Bearish on Credit Card Industry; Not Buying American Express Shares

Posted on | November 16, 2009 | No Comments

Warren Buffett recently told CNBC that his Berkshire Hathaway has not added shares of American Express in years.  With this being the case is Warren Buffett bearish on the credit card industry?  Many CEO’s of banks and financial institutions have made statements that they do not see profitability until mid 2010 or even into 2011.

The response from Buffett came after Alice Schroeder published a statement in the paperback version of “The Snowball.”  Schroeder published a statement that Berkshire Hathaway had been buying American Express shares but Warren Buffett corrected the states and said that is was wrong as he hasn’t bought shaves of American Express in years.  The SEC filings of Berkshire Hathaway confirm this.

Many credit card companies have seen a steady drop since the highs of 2007.  Some of these companies are still down over 35% from those highs.  Even after a strong move up in the last nine months these companies are still feeling the hit of the credit crisis; so much so that Warren Buffett isn’t interested in investing in them.

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Author: Heather Best

Category: Current News

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