5 Best Stocks to Buy According to Warren Buffett

3. American Express Company (NYSE: AXP)

Number of Hedge Fund Holders: 52

American Express Company (NYSE: AXP) is a New York-based firm that provides financial and travel-related services. It is ranked third on our list of 10 best stocks to buy according to Warren Buffett. Regulatory filings show that at the end of June 2021, Berkshire Hathaway owned more than 151 million shares in the finance firm that were worth over $25 billion, representing 8.5% of the investment portfolio. 

On July 26, investment advisory RBC Capital maintained a Sector Perform rating on American Express Company (NYSE: AXP) stock and raised the price target to $185 from $174, noting that the revenue trends at the firm were improving. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company (NYSE: AXP) with 15.3 million shares worth more than $2.5 billion. 

In its Q2 2021 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 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.”