Cramer Question's American Express' Credibility

Shares of American Express Company AXP plunged heavily over the last few days as analysts continued to either downgrade the stock or reduce its price target. CNBC’s Jim Cramer recently questioned the company's credibility. He also opined on Berkshire Hathaway Inc. (NYSE: BRK-B) increasing its stake in International Business Machines Corporation IBM.

Should Have Provided More Insight

"Well, American Express frankly, the future of a lot of their growth came from wherever Costco goes," Cramer said. "We  didn’t really understand that interrelation and on the previous conference call management talked about the possibility that this deal couldn't work out. They gave you no insight how this was perhaps the biggest generator of cards and we kind of were, I think, believing that 2 to 4 percent of their revenues could be hurt, it’s much more than that."

He continued, "So, I think it's the shock that came from the idea that 'Wow! We didn't know that Costco was the principal driver' and the company should have shared that with us and the company should have given us more insight about how material that was, which is why I question the company’s credibility."

Were You Surprised By The Additional Shares That Warren Buffett Bought In IBM?

"I think Warren Buffett is a guy who believes and I think he believes in the buyback and the company says ‘listen, we're going to give Warren Buffett, we're going to give the existing shareholders exactly what they want," Cramer said.

"I have said to the company, 'No, those guys are cadre; they will be with you thick and thin.' You want to bring more people to the stadium by doing that you need growth, but maybe they will come up with that, but right now they are only pleasing the cadre, they are not pleasing the people they need to find."