5 Best Value Stocks to Buy According to Warren Buffett

3. American Express Company (NYSE:AXP)

Buffett and American Express Company (NYSE:AXP) go back a long ways to say the least, all the way to 1964, when Buffett first invested in the credit card and financial services company in the midst of the Salad Oil Scandal (yes, that’s a real thing), a move that perfectly encapsulates Buffett’s motto to be “greedy when others are fearful”.

Berkshire owned over 151 million AXP shares at the end of September, giving it a nearly 19% ownership position in the company. Buffett emphasized the importance of safeguarding the AXP brand during discussions with CEO Stephen Squeri earlier this year in regards to the coronavirus pandemic, which prompted the company to adjust its member rewards and prioritize its customer service. AXP’s earnings have been cut in half this year, nearly doubling its P/E to 28x, but shares still trade at a solid 3.29x sales, only slightly above their five-year average.