Giverny Capital: American Express (AXP) an Attractive Bet

Giverny Capital Asset Management, in its latest investor letter for the first quarter of 2026, highlighted American Express (AXP:NYSE) as an attractive investment opportunity. This came as the firm's model portfolio declined 6.88% during the quarter, compared to the S&P 500's 4.33% drop.

Why Giverny Capital Finds AXP Attractive

Giverny Capital noted that American Express possesses a strong business model with a premium brand and a high-spending customer base, offering relative protection during inflationary periods and economic uncertainty. The company's focus on discretionary spending for travel and entertainment also enhances revenue resilience.

Portfolio Performance and Broader Context

Despite underperforming the index in Q1, Giverny Capital's model portfolio delivered a 12-month return of 8.52%, versus the S&P 500's 17.80%. The firm attributed the mixed performance to geopolitical tensions and inflation concerns impacting markets.

What This Means for Investors

American Express remains a favored stock among some asset managers for its defensive qualities in an inflationary environment. However, investors should consider risks related to a potential decline in discretionary consumer spending if a recession occurs.