American Express Company (AXP)

gt7255 (< 20) Submitted: 6/20/2009 1:53:31 AM

Recs: 0 Rec This

If you'd started acquiring the company in 1964 as Warren did, you'd be happy with the company, too. I don't think Karl Malden was buried with his. I don't think Warren will be either.

SMB1959 (< 20) Submitted: 6/28/2009 2:08:12 PM

Recs: 2 Rec This

I use a tool I call a "liquidity ratio" (LR). LR = cash accounts receivable-accurred interest / long term debt. It is a quick and dirty way to analyze the underlaying business economics of a financial company. Apparently, Mr. Market is punishing AXP because its' net earnings are down and it has a ton of long term debt. I was concerned about this so I went through their fillings over the past ten years and found that, even today, it has always been liquid enough to pay off its' long and short term debt in one or two years. AXP has a very low amount of Treasury Stock compared to its' past holdings but its' Retained Earnings are decent. Of course it has no R&D, patent, depreciation, etc. costs which can beat a company down. This is a very strong company and it will beat the market averages consistently in the next year or two. How long is anyones guess but as you mentioned, only the best credit holders can maintain an AXP card :) Keep listening to Mr. Buffett.

Lalaluna (< 20) Submitted: 8/23/2009 6:50:22 PM

Recs: 0 Rec This

SMB1959 Are u willing to share the tool "liquidity ratio" you mention.. I am very interested on knowing how it works ..