Why I'm Holding On to American Express Stock Through the Market Plunge

When I was fresh out of college in the late 1990s and had my first job in the corporate world, the first stock I invested in was American Express (NYSE: AXP). My parents were serious card users and I saw a company that offered a premium experience for loyal customers.

This is a strong sentiment among American Express cardholders even today. The company works hard to earn that trust, and it's been rewarded in return with increasing profits. And I've been rewarded with high returns on the stock. Even in this downturn, I'm not willing to drop it.

American Express has weathered other storms successfully before. CEO Stephen Squeri noted in an investor call on March 17 that throughout the aftermath of the Sept. 11 terrorist attacks and the financial crisis, attrition rates did not change. And the 9% of revenue that annual card fees contribute to the total make up a static payment that won't be affected by a few months of economic fallout due to the COVID-19 coronavirus outbreak.

Source Fool.com