Mastercard and American Express dominate global payments as Buffett’s Berkshire thrives
Mastercard and American Express, two titans of the payment industry, have recently reported their global presence and performance. Meanwhile, legendary investor Warren Buffett's Berkshire Hathaway continues to make headlines with its impressive portfolio and growth.
Mastercard, operating one of the world's largest payment networks, processed a staggering $4 trillion in global purchase volume in 2023. With over 3 billion cards in circulation across 220 countries, the company benefits from significant network effects. It holds a 21% market share in global purchase volume, trailing only China's UnionPay and Visa.
American Express, on the other hand, operates a closed-loop payment system. Its strong brand attracts affluent consumers, helping to mitigate credit risk. The company retains credit card debt incurred by customers, setting it apart from open-loop networks like Mastercard.
Turning to the world of investments, Warren Buffett, CEO of Berkshire Hathaway since 1965, has achieved an annualized return of 20% on investments. A $100 investment in the company in 1965 would be worth a remarkable $5.5 million today. Buffett's portfolio, currently valued at about $258 billion, includes long-term holdings in companies like Apple and Coca-Cola. Notably, he has adjusted his portfolio over the years, partially selling off positions in companies such as DaVita.
Moody's, a leading credit rating company in the U.S., holds a 32% market share. It relies on debt issuance for its core business but has diversified its earnings through Moody's Analytics. Aon, an insurance broker, also benefits from long-term trends driving increased demand for risk protection. It connects clients with insurers, profiting from the growing need for insurance services.
Mastercard and American Express continue to dominate the payment industry, with Mastercard processing $4 trillion in global purchase volume and American Express attracting affluent consumers. Warren Buffett's Berkshire Hathaway maintains its impressive investment track record, with a $100 investment in 1965 now worth $5.5 million. Moody's and Aon, meanwhile, demonstrate the strength and diversity of their respective businesses in the credit rating and insurance brokerage sectors.
