From Yahoo Finance: 2025-05-31 03:55:00

American Express and Visa are long-term Berkshire investments. Visa’s lightweight model allows for faster expansion, but American Express is better insulated from rising interest rates. Warren Buffett will step down as CEO of Berkshire Hathaway by year-end, raising questions about his successor Greg Abel’s ability to maintain growth rates in the stock portfolio. Buffett holds significant stakes in both American Express and Visa, with the former being the second-largest position in Berkshire’s portfolio. American Express is a bank that issues cards, while Visa partners with financial institutions. American Express targets higher-income customers, while Visa has a broader reach. Both companies face pressure to reduce swipe fees, with Visa and Mastercard being bigger targets. Analysts expect both American Express and Visa to grow their earnings per share at a compound annual growth rate of about 13% from 2024 to 2027. American Express stock trades at a lower multiple and offers a higher forward yield compared to Visa. Berkshire holds significantly more shares of American Express than Visa, reflecting its confidence in the former.



Read more at Yahoo Finance: Better Buffett Stock: American Express vs. Visa