Analysis of New Stars in Buffett's Investment Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy AXP?
Source: Yahoo Finance
- Heico Investment Returns: Buffett added Heico (HEI) to the Berkshire Hathaway portfolio in mid-2024, and its stock price has risen approximately 50% since then, with a 28.2% annualized return over the past decade, outperforming Apple and Amazon, showcasing its strong competitive position in the aerospace parts market.
- Market Share Advantage: Heico holds about a 50% share of the Parts Manufacturer Approval (PMA) market, with prices 30% to 40% lower than original equipment manufacturers, allowing it to maintain its market position through reverse engineering, which is expected to sustain its competitive edge.
- Alphabet's Future Potential: Alphabet (GOOGL) was added to the Berkshire portfolio in 2025, and with its advantages in cloud computing and AI chip development, it is expected to continue generating wealth for investors, particularly with its Willow chip for quantum computing, regarded as one of the most advanced with the lowest error rate.
- Long-Term Investment Value: The Berkshire Hathaway portfolio is rigorously vetted by Buffett, and with Heico and Alphabet as emerging holdings, they demonstrate strong growth potential for the next decade, making them attractive for long-term investors.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 373.63 USD with a low forecast of 280.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
7 Buy
13 Hold
1 Sell
Moderate Buy
Current: 359.660
Low
280.00
Averages
373.63
High
425.00
Current: 359.660
Low
280.00
Averages
373.63
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
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.
Analysis of New Stars in Buffett's Investment Portfolio
- Heico Investment Returns: Buffett added Heico (HEI) to the Berkshire Hathaway portfolio in mid-2024, and its stock price has risen approximately 50% since then, with a 28.2% annualized return over the past decade, outperforming Apple and Amazon, showcasing its strong competitive position in the aerospace parts market.
- Market Share Advantage: Heico holds about a 50% share of the Parts Manufacturer Approval (PMA) market, with prices 30% to 40% lower than original equipment manufacturers, allowing it to maintain its market position through reverse engineering, which is expected to sustain its competitive edge.
- Alphabet's Future Potential: Alphabet (GOOGL) was added to the Berkshire portfolio in 2025, and with its advantages in cloud computing and AI chip development, it is expected to continue generating wealth for investors, particularly with its Willow chip for quantum computing, regarded as one of the most advanced with the lowest error rate.
- Long-Term Investment Value: The Berkshire Hathaway portfolio is rigorously vetted by Buffett, and with Heico and Alphabet as emerging holdings, they demonstrate strong growth potential for the next decade, making them attractive for long-term investors.
See More
American Express Renews Multi-Year Agreement with NBA
- Investment Growth: American Express's increased investment in the WNBA and USA Basketball is expected to significantly enhance brand visibility and engagement with basketball fans, thereby driving customer loyalty and transaction volumes.
- Financial Performance: On January 30, the company reported a 10% year-over-year revenue growth to $18.98 billion, surpassing the analyst consensus estimate of $18.92 billion, primarily driven by higher Card Member spending and increased net interest income.
- Future Outlook: American Express expects full-year revenue between $78.73 billion and $79.45 billion, representing a 9%-10% year-over-year increase, indicating strong growth potential despite the analyst consensus of $78.62 billion.
- Technical Analysis: American Express shares are currently priced at $367.27, trading 2.2% above the 20-day and 2.4% above the 100-day simple moving averages, demonstrating strong long-term market performance, although the relative strength index (RSI) is in neutral territory.
See More
AMERICAN EXPRESS CO - NEW DEAL INCLUDES USA BASKETBALL AND NBA TAKE-TWO MEDIA IN AMEX PORTFOLIO
American Express Deal: American Express has added a new partnership that enhances its offerings in the basketball sector, particularly focusing on the NBA.
Media Expansion: The deal includes a media component that aims to expand American Express's presence in the sports media landscape, specifically through NBA-related content.
See More
NBA and American Express Extend Partnership for Multiple Years
Announcement of Partnership: The NBA and American Express have announced a multi-year partnership extension.
Details of the Partnership: This extension will enhance fan experiences and provide new benefits for cardholders during NBA events.
See More
American Express Faces Competitive Risks but Outlook Remains Positive
- Competitive Risk Analysis: American Express (AXP), comprising over 16% of Buffett's portfolio, faces competitive risks from BNPL and stablecoins; however, its market position remains robust despite these challenges.
- Revenue Growth Momentum: In Q4 2025, American Express generated $9.9 billion in revenue from merchants and $2.6 billion in card membership fees, indicating strong financial performance, with double-digit growth expected to continue into 2026.
- Young Customer Demographics: As of Q4, millennials and Gen Z now represent the largest share of U.S. consumer spending and are the fastest-growing cohorts, providing strong support for American Express's future growth prospects.
- Stablecoin Exploration: American Express is actively exploring opportunities related to stablecoins, with CEO Steve Squeri noting their potential use in certain payment scenarios, demonstrating the company's adaptability to emerging payment mechanisms.
See More
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
Analysis of New Stars in Buffett's Investment Portfolio
- Heico Investment Returns: Buffett added Heico (HEI) to the Berkshire Hathaway portfolio in mid-2024, and its stock price has risen approximately 50% since then, with a 28.2% annualized return over the past decade, outperforming Apple and Amazon, showcasing its strong competitive position in the aerospace parts market.
- Market Share Advantage: Heico holds about a 50% share of the Parts Manufacturer Approval (PMA) market, with prices 30% to 40% lower than original equipment manufacturers, allowing it to maintain its market position through reverse engineering, which is expected to sustain its competitive edge.
- Alphabet's Future Potential: Alphabet (GOOGL) was added to the Berkshire portfolio in 2025, and with its advantages in cloud computing and AI chip development, it is expected to continue generating wealth for investors, particularly with its Willow chip for quantum computing, regarded as one of the most advanced with the lowest error rate.
- Long-Term Investment Value: The Berkshire Hathaway portfolio is rigorously vetted by Buffett, and with Heico and Alphabet as emerging holdings, they demonstrate strong growth potential for the next decade, making them attractive for long-term investors.
See More
American Express Renews Multi-Year Agreement with NBA
- Investment Growth: American Express's increased investment in the WNBA and USA Basketball is expected to significantly enhance brand visibility and engagement with basketball fans, thereby driving customer loyalty and transaction volumes.
- Financial Performance: On January 30, the company reported a 10% year-over-year revenue growth to $18.98 billion, surpassing the analyst consensus estimate of $18.92 billion, primarily driven by higher Card Member spending and increased net interest income.
- Future Outlook: American Express expects full-year revenue between $78.73 billion and $79.45 billion, representing a 9%-10% year-over-year increase, indicating strong growth potential despite the analyst consensus of $78.62 billion.
- Technical Analysis: American Express shares are currently priced at $367.27, trading 2.2% above the 20-day and 2.4% above the 100-day simple moving averages, demonstrating strong long-term market performance, although the relative strength index (RSI) is in neutral territory.
See More
AMERICAN EXPRESS CO - NEW DEAL INCLUDES USA BASKETBALL AND NBA TAKE-TWO MEDIA IN AMEX PORTFOLIO
American Express Deal: American Express has added a new partnership that enhances its offerings in the basketball sector, particularly focusing on the NBA.
Media Expansion: The deal includes a media component that aims to expand American Express's presence in the sports media landscape, specifically through NBA-related content.
See More
NBA and American Express Extend Partnership for Multiple Years
Announcement of Partnership: The NBA and American Express have announced a multi-year partnership extension.
Details of the Partnership: This extension will enhance fan experiences and provide new benefits for cardholders during NBA events.
See More
American Express Faces Competitive Risks but Outlook Remains Positive
- Competitive Risk Analysis: American Express (AXP), comprising over 16% of Buffett's portfolio, faces competitive risks from BNPL and stablecoins; however, its market position remains robust despite these challenges.
- Revenue Growth Momentum: In Q4 2025, American Express generated $9.9 billion in revenue from merchants and $2.6 billion in card membership fees, indicating strong financial performance, with double-digit growth expected to continue into 2026.
- Young Customer Demographics: As of Q4, millennials and Gen Z now represent the largest share of U.S. consumer spending and are the fastest-growing cohorts, providing strong support for American Express's future growth prospects.
- Stablecoin Exploration: American Express is actively exploring opportunities related to stablecoins, with CEO Steve Squeri noting their potential use in certain payment scenarios, demonstrating the company's adaptability to emerging payment mechanisms.
See More
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
