Ibexx,
If you hold for a min. of 3-5 years you will be rewarded. AXP has a license to invest the float of their travelers checks, money orders, etc. for a couple of weeks. In other words, AXP gets $$$ today, invest the proceeds, for 1 day - 2 weeks sometimes longer,
then honors or redeems the travelers checks. Not only this, but in some locations they sell the checks to their customers. They always sell the money orders. As long as AXP keeps these businesses they can not fail.
Additionally, AXP has 1)its bank, 2)its credit cards, and 3)its investment counselors (personally, I have no use for them). The first 2 businesses are functional and profitable.
While the demographics of the aging population, preparing and saving for retirement, may make the investment counselors profitable. Also, more companies are adopting defined benefit plans requiring their employees to make investment choices. This may help the investment counselors. Does AXP investment counselors have the moxy to exploit these targets any better than Travelers, Merril Lynch, Charles Schwab, and many others? I don't know.
Just be patient and you will be rewarded. |
