5 Best Value Stocks To Buy According To Warren Buffett

In this piece, we’ll take a look at the 5 Best Value Stocks To Buy According To Warren Buffett. For more stocks, the risk/reward, and the methodology of this list, head on to the 10 Best Value Stocks To Buy According To Warren Buffett.

5. American Express Company (NYSE:AXP)

Berkshire Hathaway Stake: $21,016,276,000

Percentage of Berkshire Hathaway’s Portfolio: 7%

Number of Hedge Fund Holders: 67

Founded in 1850 and headquartered in New York, American Express Company (NYSE:AXP) is a provider of financial and travel services. Its key offerings include credit cards, charge cards, co-branded credit cards, and personal and corporate travel planning services. The company holds several strategic partnerships with airlines, banks, restaurants, hotels, retailers, entertainment venues, and digital players such as Apple and Google. Berkshire Hathaway kept its stake in American Express Company (NYSE:AXP) unchanged during the second quarter, and the fund had an investment value of over $12.4 billion in the company at the end of Q2 2022.

On October 24, 2022, James Fotheringham, an analyst at BMO Capital, increased his price target on American Express Company (NYSE:AXP) to $166 after the company posted a strong result for Q3 2022, beating market expectations. The analyst keeps a Market Perform rating on the stock and, in a research note, stated that the company has remained immune to the negative consequences of the current rate hikes.

At the end of the quarter ending June 2022, Berkshire Hathaway was the most bullish on American Express Company (NYSE:AXP), with a holding of 151,610,700 shares of the company. As per Insider’s Monkey database, 67 hedge funds owned stakes in American Express Company (NYSE:AXP) at the end of Q2 2022.

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.