5 Best Stocks to Buy Now According to Warren Buffett

2. American Express Co (NYSE:AXP)

Berkshire’s Stake Value: $56.09 Billion

Warren Buffett’s Berkshire has a $56.09 Billion stake in American Express Co (NYSE:AXP). The stock is down about 19% so far this year. A total of 83 hedge funds in Insider Monkey’s database had stakes in the company as of the end of the December quarter, up from 75 funds in the previous quarter.

Why are hedge funds interested in this stock that’s been a loser this year so far?

While other major banks panic over interest rate volatility, American Express Co (NYSE:AXP) is relying on secular, long-term growth catalysts deeply rooted in society: young Americans spending on lifestyle and travel.

Millennials and Gen Z make up a significant portion of U.S. consumer spending on the Amex network. American Express Co (NYSE:AXP)’s strengths come from younger consumers in their peak spending years. The average age of a new U.S. Platinum cardholder is 33, and for Gold, it’s 29. American Express Co (NYSE:AXP) exposure to interest rates is low compared with other banks. About 80% of Amex’s revenue comes from sources like merchant fees and annual card fees rather than interest income. It hit a record $10 billion in card-fee revenue in 2025.

American Express Co (NYSE:AXP) is also expected to benefit from a major wealth transfer. UBS estimates that about $83 trillion in assets could change hands globally over the next 20 to 25 years, including more than $74 trillion flowing to younger generations. Younger consumers spend more, and that bodes well for companies like American Express Co (NYSE:AXP).

Bretton Fund stated the following regarding American Express Company (NYSE:AXP) in its fourth quarter 2025 investor letter:

“American Express Company (NYSE:AXP) cardholders keep swiping—or these days, tapping—their cards and paying their credit card statements on time. Despite increased competition in the high-net-worth segment, their Platinum Card remains a desirable product, with high fees but high rewards. Earnings per share increased 15%, and the stock returned 26%.”