Charlie Munger Stock Portfolio: 5 Biggest Positions

In this article, we discuss the 5 biggest positions in the Charlie Munger stock portfolio. If you want to read our detailed analysis of these stocks, go directly to Charlie Munger Stock Portfolio: 10 Biggest Positions.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 52

The investment made by Buffett and Munger in American Express Company (NYSE:AXP) has been one of the biggest success stories of their careers. The duo started buying the stock in 1963 after a business scandal pulled back the share price. Over the years, the company has transformed into one of the most successful payments firms. However, the rise of fintech and crypto is now threatening the legacy position of the firm, but Munger, while acknowledging the dangers faced by the firm, remains bullish on it. 

BMO Capital analyst James Fotheringham recently raised the price target on American Express Company (NYSE:AXP) stock to $151 from $147 and kept a Market Perform rating on the shares, appreciating the earnings beat of the firm in the third quarter. 

Among 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.”