Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2026 investor letter. A copy can be downloaded here. The model portfolio fell 6.88% this quarter, compared to the S&P 500’s 4.33% decline. Over the past year, the portfolio gained 8.52%, while the index increased by 17.80%. Geopolitical conflicts and inflation concerns drove quarterly volatility. Despite ongoing uncertainties, the firm remains confident that its portfolio companies will sustain strong earnings and maintain healthy balance sheets, focusing on company-specific news rather than short-term fluctuations. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Giverny Capital Asset Management highlighted American Express Company (NYSE:AXP) as a newly added position. American Express Company (NYSE:AXP) is a leading financial services company that operates as an integrated payments company. On June 17, 2026, American Express Company (NYSE:AXP) closed at $340.74 per share. One-month return of American Express Company (NYSE:AXP) was 9.98%, and its shares gained 14.95% over the past 52 weeks. American Express Company (NYSE:AXP) has a market capitalization of $232.35 billion.
Giverny Capital Asset Management stated the following regarding American Express Company (NYSE:AXP) in its Q1 2026 investor letter:
“We used most of our Ametek proceeds to establish a new position in American Express Company (NYSE:AXP) in March, at a price of $294. Probably many of you hold at least one American Express card. It’s one of the premier status brands in the world, with a customer base of prime borrowers who often pay hundreds of dollars a year for the privilege of earning lucrative rewards. Those same cardholders generally do not revolve loan balances, meaning Amex earns much more money from transaction fees and annual cardholder dues than it does in interest on monthly balances. It makes money because people transact with the card to earn rewards, not because they need to borrow money to make ends meet.
It is on my mind that we may be living in a time of peak affluence. I read recently that the United States now has more than 430,000 households with a net worth above $30 million. Simultaneously, the federal government is running irresponsible budget deficits, many college-educated young people can’t get career-track jobs or afford housing, AI may threaten the future of white-collar work, and income inequality mainly seems to worsen. Could higher taxes, lower federal spending, an AI-led white-collar recession, a push for redistributive economic policies or perhaps some combination of all of them bode ill for the kind of folks who hold American Express cards?…” (Click here to read the full text)
American Express Company (NYSE:AXP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 83 hedge fund portfolios held American Express Company (NYSE:AXP) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of American Express Company (NYSE:AXP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMERICAN EXPRESS COMPANY (NYSE:AXP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered American Express Company (NYSE:AXP) and shared SGA Global Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
