5 Best Long-Term Stocks To Buy According To Warren Buffett

4. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 68

Berkshire’s Holding Period: 9 Years

Berkshire’s Stake Value: $22,400,480,926

American Express Company (NYSE:AXP) provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments – Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. Warren Buffett has been a long-term position holder in the company, and as of Q4 2022, he owned a $22.4 billion stake in American Express Company (NYSE:AXP).  

On February 8, Betsy Graseck, an analyst at Morgan Stanley, upgraded American Express Company (NYSE:AXP) rating from Equal Weight to Overweight and raised the price target to $186. According to the analyst, the stock is the top pick in the consumer finance space. Morgan Stanley is focusing on stocks with higher credit quality, sustainable revenue growth, and positive operating leverage. 

According to Insider Monkey’s data, 68 hedge funds were bullish on American Express Company (NYSE:AXP) at the end of September 2022, compared to 67 funds in the last quarter. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:

“In financials, American Express Company (NYSE:AXP) has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”