10 Best Stocks to Buy According to Billionaire Warren Buffett

2. American Express Co (NYSE:AXP)

Portion of portfolio: 16.84%

Value of holdings: $44,996,539,653

The New York-based financial services company American Express Co (NYSE:AXP) operates as an integrated payments company and is known for its highly rewarding Membership Rewards program.

Buffett maintained his ownership stake in the company during the fourth quarter holding 151,610,700 of its shares.

The company wrapped up 2024, during which it issued 13 million new cards, with billings growth accelerating to 8% in the fourth quarter of 2024. That was fueled by stronger spending from consumer and commercial customers during the holiday season. Revenue for the quarter amounted to $17.2 billion, up 9% year-over-year, while net income rose 12% over the same period, exceeding $2.1 billion. American Express guided 8% to 10% revenue growth in 2025. The company’s growth is anticipated to be driven by a range of opportunities within its premium customer base going forward, particularly among Millennial and Gen Z consumers, as well as in key international markets.

For the first quarter the company reported $17 billion in revenue, up 8% year over year on an FX adjusted basis, or 9% excluding leap year impact. Net income was $2.6 billion or $3.64 per share. Total card member spending growth was 6% in the quarter, or 7% excluding leap year impact.

American Express said in March it has agreed to acquire the US-based expense management software provider Center for an undisclosed sum. Expected to close in the second quarter of 2025, the deal will boost American Express’ commercial card payments with automated accounting, policy compliance, and enhanced reward benefits.

Investment management company Bretton Capital Management called American Express, one of Warren Buffett’s top portfolio holdings in its fourth quarter 2024 investor letter its “best-performing stock” in the last year, boasting a 60% return, surpassing 2023’s 29%.

American Express’ shares traded at $267.06 per share on April 24, at the time of writing, losing 10.02% since the beginning of the year. The company has a market capitalization of $187.099 billion.