Warren Buffett and Jim Cramer Love These 5 Stocks

3. American Express Company (NYSE:AXP)

Warren Buffett’s Stake Value: $22,618,800,333

Earlier this year, Jim Cramer, while answering a question about American Express Company (NYSE:AXP), said that companies like American Express profit due to people going out at night. He also said that the booming travel demand around the world is also benefitting American Express Company (NYSE:AXP).

Warren Buffett has been a long-term shareholder of American Express Company (NYSE:AXP). As of the end of the third quarter of 2023, Berkshire owns a $23 billion stake in American Express Company (NYSE:AXP).

In October, American Express Company (NYSE:AXP) posted third quarter results. GAAP EPS in the period came in at $3.30, beating estimates by $0.36. Revenue in the period jumped about 13.4% year over year to $15.38 billion, beating estimates by $20 million.

American Express Company (NYSE:AXP) talked in detail about the factors driving its business and full-year 2023 outlook in Q3 earnings call. American Express Company (NYSE:AXP) said:

“For the full year, we expect revenue growth of around 15%, consistent with the revenue guidance range we provided at the beginning of the year. As I discussed before, we now expect variable Card Member engagement expenses to be around 42% of total revenues on a full year basis, modestly below our original expectation. On marketing, we still expect to spend around $5.5 billion for the full year. And lastly, we now expect our operating expenses to be around $14.5 billion this year, modestly above our original expectation as we invest in areas critical to our success. Taking everything together, our earnings per share guidance remains between $11.00 and $11.40. Looking forward, we remain committed to focusing on achieving our aspirations of sustainably delivering revenue growth in excess of 10% and meeting EPS growth in a steady-state macro environment.”

Read the full earnings call transcript here.

ClearBridge Large Cap Value Strategy made the following comment about American Express Company (NYSE:AXP) in its Q3 2023 investor letter:

“Other detractors included American Express Company (NYSE:AXP), which fell on concerns over slower consumer spending and rising charge-offs, as well as wireless tower REIT American Tower, which was pressured by the increase in rates along with the broader real estate sector.”