Key Points
-
U.S. household debt has reached a record $18.8 trillion, with loan delinquencies at a near-decade high of 4.8%. This trend raises concerns for lenders like American Express.
-
American Express, Berkshire Hathaway’s second-largest holding at over $47 billion, has seen its stock fall nearly 20% due to economic concerns impacting consumer spending.
-
Constellation Brands, which operates brands like Corona and Modelo, has struggled as U.S. alcohol consumption drops to a multi-decade low of 54%, prompting corporate restructuring under new CEO Nicholas Fink.
-
Healthcare company DaVita is facing challenges, with net income declining by 17% despite a modest 5% revenue increase in fiscal 2025, leading Berkshire Hathaway to scale back its investment.
