- Berkshire Hathaway has made American Express one of its biggest equity positions, with double-digit revenue and earnings growth.
- Warren Buffett’s conviction in American Express remains strong, as Berkshire refuses to trim its stake in the company despite its growing percentage of overall holdings.
- American Express is Berkshire’s second largest equity holding, valued at about $50 billion, reflecting a stable and successful business model.
- In 2024, American Express saw revenue rise 9% to $65.9 billion, with earnings per share climbing 25% to $14.01, demonstrating strong performance.
- Recent quarters show continued momentum for American Express, with revenue and earnings per share growth, driven by successful card offerings and strong customer demand.
- American Express’s valuation stands out among Buffett’s big bets, with a price-to-earnings ratio of 24, reflecting consistent revenue growth and shareholder-friendly capital returns.
- Despite risks such as economic downturns and competition, American Express remains an attractive investment with the potential for long-term growth and strong performance.
- Considerations for investing in American Express should include the company’s recent performance, valuation, and potential for future growth based on market trends and competitive landscape.
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