American Express: Buffett's Long-Term Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AXP?
Source: Fool
- Holding History: Berkshire Hathaway first purchased American Express stock in 1964, re-entering in 1991 and has not sold since, demonstrating long-term confidence and strategic value in the company.
- Ownership and Valuation: Currently, Berkshire holds 151,610,700 shares of American Express, representing 22.1% of the total company, valued at over $46 billion, highlighting its significance in the investment portfolio.
- Outstanding Market Performance: Over the past decade, American Express has achieved a total return of 496%, significantly outperforming the broader market's 305%, indicating strong competitiveness and growth potential in the financial services sector.
- Dividend Yield and Investment Returns: While American Express's dividend yield stands at 1.07%, below the S&P 500's 1.15%, Berkshire's cost basis of $8.60 per share and an annual dividend of $3.80 yield a remarkable 44% annual return, showcasing consistent cash flow and investment returns.
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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: 305.990
Low
280.00
Averages
379.06
High
425.00
Current: 305.990
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.
Berkshire Hathaway Holds American Express for Over 30 Years
- Long-Term Holding Performance: Berkshire Hathaway first purchased American Express stock in 1964 and has held it for over 30 years, achieving a total return of 496%, significantly outperforming the S&P 500's 305%, demonstrating the investment's exceptional performance.
- Dividend Yield Growth: With an annual dividend of $3.80 per share, American Express currently has a yield of 1.07%, below the S&P 500's 1.15%; however, due to consistent dividend growth over the past three decades, Berkshire's yield on cost is much higher, reaching 44% annually.
- Investment Value Analysis: Berkshire's total investment in American Express is approximately $1.3 billion, with a cost basis of about $8.60 per share, and the current holding of 151,610,700 shares is valued at over $46 billion, highlighting its significance and profitability in the investment portfolio.
- Management Stability: New CEO Greg Abel has made it clear that he does not intend to change the company's existing strategy; despite Warren Buffett stepping down, the core value and profitability of American Express continue to justify its important position in Berkshire's portfolio.
See More
American Express: Buffett's Long-Term Investment
- Holding History: Berkshire Hathaway first purchased American Express stock in 1964, re-entering in 1991 and has not sold since, demonstrating long-term confidence and strategic value in the company.
- Ownership and Valuation: Currently, Berkshire holds 151,610,700 shares of American Express, representing 22.1% of the total company, valued at over $46 billion, highlighting its significance in the investment portfolio.
- Outstanding Market Performance: Over the past decade, American Express has achieved a total return of 496%, significantly outperforming the broader market's 305%, indicating strong competitiveness and growth potential in the financial services sector.
- Dividend Yield and Investment Returns: While American Express's dividend yield stands at 1.07%, below the S&P 500's 1.15%, Berkshire's cost basis of $8.60 per share and an annual dividend of $3.80 yield a remarkable 44% annual return, showcasing consistent cash flow and investment returns.
See More
A Value Manager Contemplates Life's Lessons Following a Somber Diagnosis
Current Global Tensions: The article highlights the ongoing global conflicts, emphasizing the impact of missile strikes and market volatility on international stability.
Importance of Perspective: It suggests that amidst chaos, it's crucial to focus on what truly matters in life, urging readers to maintain a broader perspective beyond immediate crises.
See More
Buffett's Core Holdings Update
- Core Holdings Overview: Greg Abel, Buffett's successor, highlighted nine companies that constitute over 60% of Berkshire Hathaway's equity portfolio, reflecting the company's long-term confidence in these outstanding businesses.
- Apple's Performance: Apple (AAPL) represents 19% of Berkshire's marketable equities, and despite Buffett selling over three-quarters of its shares during his tenure, its strong sales growth and over $100 billion in free cash flow keep it as a core holding.
- American Express Strategy: American Express (AXP) has been a core holding for over 30 years, and Abel intends to maintain this position, leveraging its high-end customer base and digital payment transformation to drive strong earnings growth, with a forward P/E ratio of just 17.
- Coca-Cola's Steady Growth: Coca-Cola (KO) benefits from brand strength allowing price increases, achieving 5% organic revenue growth last year, and is expected to maintain similar growth in 2026, although its current P/E ratio of 24 may appear slightly overvalued.
See More
Greg Abel Takes Over Berkshire's Portfolio Management from Warren Buffett
- Core Holdings Strategy: In his first letter to shareholders, Abel indicated that Berkshire will maintain limited trading in nine core stocks, which collectively account for over 60% of the company's portfolio, demonstrating a strong commitment to long-term investments.
- Apple's Performance: Despite Buffett selling over three-quarters of Apple shares during his tenure, Abel's letter suggests a potential halt in selling, with Apple expected to generate over $100 billion in free cash flow in 2026, reflecting its strong market position.
- American Express Growth: As a core holding for over 30 years, American Express has successfully attracted high-end consumers and small businesses, driving revenue growth, with a forward P/E ratio of just 17, indicating a solid investment opportunity moving forward.
- Coca-Cola Stability: Coca-Cola leveraged its global brand recognition to achieve 5% organic revenue growth last year, and is expected to maintain similar growth in 2026; despite a 24 P/E ratio, Berkshire's significant capital gains on its investment suggest that Abel is unlikely to sell these shares anytime soon.
See More
Coca-Cola and American Express: Long-Term Investment Value
- Long-Term Holdings: Berkshire Hathaway has held American Express stock since 1964 and Coca-Cola since 1988, demonstrating the company's long-term trust and strategic vision for these two firms over nearly 40 years.
- Significant Dividend Income: In 2025, Berkshire received $816 million in dividends from Coca-Cola and $479 million from American Express, indicating that these investments are not only stable but also growing, enhancing the company's cash flow and financial flexibility.
- Cost Basis Yield: With a cost basis of $3.25 per share for Coca-Cola and an annual dividend of $2.12, Berkshire enjoys a yield of 65%, while American Express has a cost basis of $8.60 and a dividend of $3.80, yielding 44%, showcasing the substantial financial returns from long-term holdings.
- Strategic Portfolio: New CEO Abel emphasized that Coca-Cola, American Express, Apple, and Moody's are core investments for Berkshire, expected to compound over time, with dividend income providing crucial funding for future acquisitions and operations.
See More
Berkshire Hathaway Holds American Express for Over 30 Years
- Long-Term Holding Performance: Berkshire Hathaway first purchased American Express stock in 1964 and has held it for over 30 years, achieving a total return of 496%, significantly outperforming the S&P 500's 305%, demonstrating the investment's exceptional performance.
- Dividend Yield Growth: With an annual dividend of $3.80 per share, American Express currently has a yield of 1.07%, below the S&P 500's 1.15%; however, due to consistent dividend growth over the past three decades, Berkshire's yield on cost is much higher, reaching 44% annually.
- Investment Value Analysis: Berkshire's total investment in American Express is approximately $1.3 billion, with a cost basis of about $8.60 per share, and the current holding of 151,610,700 shares is valued at over $46 billion, highlighting its significance and profitability in the investment portfolio.
- Management Stability: New CEO Greg Abel has made it clear that he does not intend to change the company's existing strategy; despite Warren Buffett stepping down, the core value and profitability of American Express continue to justify its important position in Berkshire's portfolio.
See More
American Express: Buffett's Long-Term Investment
- Holding History: Berkshire Hathaway first purchased American Express stock in 1964, re-entering in 1991 and has not sold since, demonstrating long-term confidence and strategic value in the company.
- Ownership and Valuation: Currently, Berkshire holds 151,610,700 shares of American Express, representing 22.1% of the total company, valued at over $46 billion, highlighting its significance in the investment portfolio.
- Outstanding Market Performance: Over the past decade, American Express has achieved a total return of 496%, significantly outperforming the broader market's 305%, indicating strong competitiveness and growth potential in the financial services sector.
- Dividend Yield and Investment Returns: While American Express's dividend yield stands at 1.07%, below the S&P 500's 1.15%, Berkshire's cost basis of $8.60 per share and an annual dividend of $3.80 yield a remarkable 44% annual return, showcasing consistent cash flow and investment returns.
See More
A Value Manager Contemplates Life's Lessons Following a Somber Diagnosis
Current Global Tensions: The article highlights the ongoing global conflicts, emphasizing the impact of missile strikes and market volatility on international stability.
Importance of Perspective: It suggests that amidst chaos, it's crucial to focus on what truly matters in life, urging readers to maintain a broader perspective beyond immediate crises.
See More
Buffett's Core Holdings Update
- Core Holdings Overview: Greg Abel, Buffett's successor, highlighted nine companies that constitute over 60% of Berkshire Hathaway's equity portfolio, reflecting the company's long-term confidence in these outstanding businesses.
- Apple's Performance: Apple (AAPL) represents 19% of Berkshire's marketable equities, and despite Buffett selling over three-quarters of its shares during his tenure, its strong sales growth and over $100 billion in free cash flow keep it as a core holding.
- American Express Strategy: American Express (AXP) has been a core holding for over 30 years, and Abel intends to maintain this position, leveraging its high-end customer base and digital payment transformation to drive strong earnings growth, with a forward P/E ratio of just 17.
- Coca-Cola's Steady Growth: Coca-Cola (KO) benefits from brand strength allowing price increases, achieving 5% organic revenue growth last year, and is expected to maintain similar growth in 2026, although its current P/E ratio of 24 may appear slightly overvalued.
See More
Greg Abel Takes Over Berkshire's Portfolio Management from Warren Buffett
- Core Holdings Strategy: In his first letter to shareholders, Abel indicated that Berkshire will maintain limited trading in nine core stocks, which collectively account for over 60% of the company's portfolio, demonstrating a strong commitment to long-term investments.
- Apple's Performance: Despite Buffett selling over three-quarters of Apple shares during his tenure, Abel's letter suggests a potential halt in selling, with Apple expected to generate over $100 billion in free cash flow in 2026, reflecting its strong market position.
- American Express Growth: As a core holding for over 30 years, American Express has successfully attracted high-end consumers and small businesses, driving revenue growth, with a forward P/E ratio of just 17, indicating a solid investment opportunity moving forward.
- Coca-Cola Stability: Coca-Cola leveraged its global brand recognition to achieve 5% organic revenue growth last year, and is expected to maintain similar growth in 2026; despite a 24 P/E ratio, Berkshire's significant capital gains on its investment suggest that Abel is unlikely to sell these shares anytime soon.
See More
Coca-Cola and American Express: Long-Term Investment Value
- Long-Term Holdings: Berkshire Hathaway has held American Express stock since 1964 and Coca-Cola since 1988, demonstrating the company's long-term trust and strategic vision for these two firms over nearly 40 years.
- Significant Dividend Income: In 2025, Berkshire received $816 million in dividends from Coca-Cola and $479 million from American Express, indicating that these investments are not only stable but also growing, enhancing the company's cash flow and financial flexibility.
- Cost Basis Yield: With a cost basis of $3.25 per share for Coca-Cola and an annual dividend of $2.12, Berkshire enjoys a yield of 65%, while American Express has a cost basis of $8.60 and a dividend of $3.80, yielding 44%, showcasing the substantial financial returns from long-term holdings.
- Strategic Portfolio: New CEO Abel emphasized that Coca-Cola, American Express, Apple, and Moody's are core investments for Berkshire, expected to compound over time, with dividend income providing crucial funding for future acquisitions and operations.
See More
