Warren Buffett 2024 Portfolio: Top 5 Stock Picks

3. American Express Company (NYSE:AXP)

Warren Buffett’s Stake: $28,402,748,537

As of the end of the fourth quarter of 2023, Berkshire Hathaway owns a $28 billion stake in American Express Company (NYSE:AXP).

In its fourth quarter 2023 investor letter, Oakmark Select Fund stated the following regarding American Express Company (NYSE:AXP):

“American Express Company (NYSE:AXP) is one of the largest credit card issuers and payment networks in the world. We believe the company’s closed-loop network, brand equity and scale represent durable competitive advantages. Unlike most card issuers that process credit card transactions over third-party networks, American Express processes transactions over its own network. This allows American Express to earn greater economics than peers on each card transaction. The company retains part of this advantage in the form of higher profitability and reinvests the rest in enhanced customer rewards and service. Over time, these investments have helped American Express build its brand and attract more lucrative, high-spending card customers. We expect this business model and customer-centric approach will continue to drive industry-leading growth for years to come. Concerns over the near-term economic outlook allowed us to purchase shares of American Express at a 13x P/E on next year’s consensus earnings estimate. We think that is an attractive valuation for a company with this combination of business quality and growth.”