Even Berkshire's Boardroom Ties Can't Prevent the Costco-AmEx Divorce
American Express credit cards are arranged in New York, Monday, Jan. 22, 2007. American Express Co., the fourth-biggest U.S. credit-card issuer, said profit rose 23 percent as defaults declined and holiday spending by cardmembers reached a record.
Photographer: ANDREW HARRERBillionaire Charles Munger, a director at Costco Wholesale Corp., has likened the company’s focus on expenses to a pious obligation and said the retailer does more to advance society than some large philanthropies.
His ties with Costco were no help Thursday to American Express Co., the credit-card lender that’s one of the largest holdings of Warren Buffett’s Berkshire Hathaway Inc., where Munger is vice chairman. AmEx said its relationship with Issaquah, Washington-based Costco in the U.S. will end next year.