It’s clear Warren Buffett and his team at Berkshire Hathaway (BRK.A -0.11%) (BRK.B -0.16%) love credit card companies. Their business model is strong, as they take a slice of each transaction processed. This toll booth model is sustainable if you provide a vital product, which credit cards have become.
Of the four major credit card issuers in the U.S., Berkshire owns shares of three of them. But which is his favorite?
American Express has several qualities Berkshire looks for in an investment
While Berkshire owns shares of Visa (V -0.24%) and Mastercard (MA -0.01%), its positions are relatively small at 0.6% and 0.4% of its assets, respectively. It doesn’t own any shares of Discover Financial (DFS 0.36%), which leaves American Express (AXP -0.03%) as the last remaining company.
But oh, does Berkshire love American Express. American Express is Berkshire’s third-largest holding,…
