Comparing Buffett Stocks: American Express vs. Visa
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy AXP?
Source: Yahoo Finance
- American Express Holdings: As of the end of last year, Berkshire Hathaway owned nearly 152 million shares of American Express, making it the second-largest position after Apple, with a total return of 511% over the past decade, highlighting its strong brand value and market position.
- Attracting Younger Customers: American Express has successfully attracted younger customers, with millennials and Gen Z now making up the largest share of U.S. consumer spending, which is expected to provide substantial financial benefits to the company over the coming decades, further solidifying its market leadership.
- Visa's Profitability: As of December 31, 2025, Berkshire's stake in Visa was only 0.4%, yet Visa's net profit margin averaged 47.6% over the past decade, establishing it as one of the most profitable companies globally, despite its ten-year return of 325%, which is significantly lower than American Express.
- Valuation and Growth Outlook: American Express has a price-to-earnings ratio of 21.3, lower than Visa's 29.8, with analysts projecting a 14.9% annual growth in adjusted earnings per share for American Express over the next three years compared to 12.5% for Visa, indicating a potentially higher return for American Express in the next five years.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 326.960
Low
280.00
Averages
379.06
High
425.00
Current: 326.960
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMERICAN EXPRESS REPORTS 2.9% NET WRITE-OFF RATE FOR PRELIMINARY U.S. SMALL BUSINESS CARD MEMBER LOANS AS OF MARCH END
- Loan Write-Off Rate: The net write-off rate for small business loans is currently at 2.9%.
- Market Context: This figure reflects the financial health and risk management within the small business lending sector as of March.
See More
American Express Reports 1.7% of U.S. Small Business Card Member Loans Were 30 Days Past Due at End of March
- Loan Delinquency Rate: As of March, 1.7% of small business loans were reported as 30 days past due.
- Focus on Small Businesses: The data highlights the financial health of small businesses in the current economic climate.
See More
American Express's Unique Business Model and Growth Potential
- Unique Business Model: American Express operates a closed-loop payments network, acting as the card issuer, network, and merchant acquirer, which allows it to capture a higher share of each transaction; 76% of its 2025 revenue will come from discount revenue, annual fees, and service fees, highlighting its spend-centric model.
- Premium Ecosystem: Positioned as a premium consumption platform, American Express offers airport lounge access, travel benefits, and curated partnerships, attracting 65% of new accounts from younger, high-income consumers, which drives sustained customer spending growth over time.
- International Market Expansion: In Q4 2025, international card services volume grew by 12%, outpacing the 9% growth of U.S. consumer services, indicating significant growth potential beyond its core U.S. market, particularly among high-spending consumers.
- Investor Outlook: Rather than aiming to be the largest payments network like Visa or Mastercard, American Express focuses on maximizing value per customer within its integrated premium ecosystem, a strategy that has enabled decades of growth and remains relevant, making it a stock worth watching for investors.
See More
American Express Expands Card Member Purchase Protections to Agentic Purchases
- Purchase Protection Expansion: American Express (AXP) extends card member purchase protections to agentic purchases, ensuring that customers are protected from errors made by AI agents when authorized, thereby enhancing customer trust and willingness to use the service.
- Developer Kit Launch: The company introduces an agentic commerce developer kit aimed at providing better services for merchants and cardholders, with merchants expected to see reduced disputes and chargebacks due to increased visibility, thus improving overall transaction efficiency.
- Enhanced Security: American Express's closed-loop network, functioning as an issuer, network, and acquirer, allows the company to holistically manage the challenges posed by agentic commerce, delivering intent-driven authorizations and enhanced fraud protection to improve security for both card members and merchants.
- Improved Member Controls: Card members gain granular spend controls through the Amex app, which will embed membership benefits, rewards, and offers directly into agent-powered interactions over time, further enhancing customer experience and loyalty.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Buffett's Retirement: On December 31, 2025, Warren Buffett officially retired, concluding his over 50-year tenure as CEO of Berkshire Hathaway, during which the company's Class A shares returned nearly 6,100,000%, showcasing his exceptional investment acumen.
- Successor's Commitment: New CEO Greg Abel has pledged to adhere to Buffett's investment principles, focusing on identifying opportunities with sustainable moats and strong management teams, although he faces challenges with Apple's current overvaluation.
- Apple Investment Risks: Despite Apple having the largest stock repurchase program globally, with $841 billion spent since 2013, its current P/E ratio stands at 33 times, significantly higher than the 10 to 15 times range during Buffett's initial investment in 2016, indicating a loss of value appeal.
- Shareholding Changes: In the nine quarters leading up to Buffett's retirement, Berkshire sold approximately 75% of its Apple stake (687.6 million shares), suggesting that under Abel's leadership, Berkshire's position in Apple may further decrease, reflecting caution towards high valuations.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Buffett's Retirement: On December 31, 2025, Warren Buffett officially retired, concluding over half a century as CEO of Berkshire Hathaway, during which the Class A shares returned nearly 6.1 million%, setting a strong foundation for his successor, Greg Abel.
- Abel's Investment Strategy: New CEO Abel has pledged to continue Buffett's investment principles, focusing on opportunities with sustainable moats and strong management teams; however, he included Apple as a 'forever' holding in his first shareholder letter, despite its current valuation contradicting Buffett's value investing philosophy.
- Apple's Stock Performance: Apple experienced stagnant sales growth from FY 2022 to FY 2024, with hardware revenues declining despite strong subscription service performance, leading to a price-to-earnings ratio of 33 times, significantly higher than the 10 to 15 times when Buffett began acquiring shares in 2016, indicating a lack of current investment appeal.
- Shareholding Changes: In the nine quarters leading up to Buffett's retirement, Berkshire sold approximately 75% of its Apple shares (around 687.6 million shares), suggesting that while Abel sees long-term potential in Apple, further reductions in holdings may occur due to concerns over high valuations.
See More
AMERICAN EXPRESS REPORTS 2.9% NET WRITE-OFF RATE FOR PRELIMINARY U.S. SMALL BUSINESS CARD MEMBER LOANS AS OF MARCH END
- Loan Write-Off Rate: The net write-off rate for small business loans is currently at 2.9%.
- Market Context: This figure reflects the financial health and risk management within the small business lending sector as of March.
See More
American Express Reports 1.7% of U.S. Small Business Card Member Loans Were 30 Days Past Due at End of March
- Loan Delinquency Rate: As of March, 1.7% of small business loans were reported as 30 days past due.
- Focus on Small Businesses: The data highlights the financial health of small businesses in the current economic climate.
See More
American Express's Unique Business Model and Growth Potential
- Unique Business Model: American Express operates a closed-loop payments network, acting as the card issuer, network, and merchant acquirer, which allows it to capture a higher share of each transaction; 76% of its 2025 revenue will come from discount revenue, annual fees, and service fees, highlighting its spend-centric model.
- Premium Ecosystem: Positioned as a premium consumption platform, American Express offers airport lounge access, travel benefits, and curated partnerships, attracting 65% of new accounts from younger, high-income consumers, which drives sustained customer spending growth over time.
- International Market Expansion: In Q4 2025, international card services volume grew by 12%, outpacing the 9% growth of U.S. consumer services, indicating significant growth potential beyond its core U.S. market, particularly among high-spending consumers.
- Investor Outlook: Rather than aiming to be the largest payments network like Visa or Mastercard, American Express focuses on maximizing value per customer within its integrated premium ecosystem, a strategy that has enabled decades of growth and remains relevant, making it a stock worth watching for investors.
See More
American Express Expands Card Member Purchase Protections to Agentic Purchases
- Purchase Protection Expansion: American Express (AXP) extends card member purchase protections to agentic purchases, ensuring that customers are protected from errors made by AI agents when authorized, thereby enhancing customer trust and willingness to use the service.
- Developer Kit Launch: The company introduces an agentic commerce developer kit aimed at providing better services for merchants and cardholders, with merchants expected to see reduced disputes and chargebacks due to increased visibility, thus improving overall transaction efficiency.
- Enhanced Security: American Express's closed-loop network, functioning as an issuer, network, and acquirer, allows the company to holistically manage the challenges posed by agentic commerce, delivering intent-driven authorizations and enhanced fraud protection to improve security for both card members and merchants.
- Improved Member Controls: Card members gain granular spend controls through the Amex app, which will embed membership benefits, rewards, and offers directly into agent-powered interactions over time, further enhancing customer experience and loyalty.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Buffett's Retirement: On December 31, 2025, Warren Buffett officially retired, concluding his over 50-year tenure as CEO of Berkshire Hathaway, during which the company's Class A shares returned nearly 6,100,000%, showcasing his exceptional investment acumen.
- Successor's Commitment: New CEO Greg Abel has pledged to adhere to Buffett's investment principles, focusing on identifying opportunities with sustainable moats and strong management teams, although he faces challenges with Apple's current overvaluation.
- Apple Investment Risks: Despite Apple having the largest stock repurchase program globally, with $841 billion spent since 2013, its current P/E ratio stands at 33 times, significantly higher than the 10 to 15 times range during Buffett's initial investment in 2016, indicating a loss of value appeal.
- Shareholding Changes: In the nine quarters leading up to Buffett's retirement, Berkshire sold approximately 75% of its Apple stake (687.6 million shares), suggesting that under Abel's leadership, Berkshire's position in Apple may further decrease, reflecting caution towards high valuations.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO
- Buffett's Retirement: On December 31, 2025, Warren Buffett officially retired, concluding over half a century as CEO of Berkshire Hathaway, during which the Class A shares returned nearly 6.1 million%, setting a strong foundation for his successor, Greg Abel.
- Abel's Investment Strategy: New CEO Abel has pledged to continue Buffett's investment principles, focusing on opportunities with sustainable moats and strong management teams; however, he included Apple as a 'forever' holding in his first shareholder letter, despite its current valuation contradicting Buffett's value investing philosophy.
- Apple's Stock Performance: Apple experienced stagnant sales growth from FY 2022 to FY 2024, with hardware revenues declining despite strong subscription service performance, leading to a price-to-earnings ratio of 33 times, significantly higher than the 10 to 15 times when Buffett began acquiring shares in 2016, indicating a lack of current investment appeal.
- Shareholding Changes: In the nine quarters leading up to Buffett's retirement, Berkshire sold approximately 75% of its Apple shares (around 687.6 million shares), suggesting that while Abel sees long-term potential in Apple, further reductions in holdings may occur due to concerns over high valuations.
See More
