Don’t Fret About Warren Buffett. Berkshire Stock Is Still a Buy.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 13 2025
0mins
Source: Barron's
Berkshire Hathaway's Investment Potential: In a challenging stock market environment, Berkshire Hathaway stands out as a company worth considering for investment opportunities.
Market Conditions: The current market makes it difficult to find high-quality companies at reasonable prices, highlighting the significance of evaluating Berkshire Hathaway.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
7 Buy
13 Hold
1 Sell
Moderate Buy
Current: 354.010
Low
280.00
Averages
373.63
High
425.00
Current: 354.010
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.
Fundstrat Launches GRNY ETF Amid Weak Performance
- Diverse ETF Themes: Fundstrat's GRNY ETF launched in November 2024, encompasses various investment themes including value investing, despite a year-to-date decline of 0.32%, it has risen 18.31% over the past 52 weeks, indicating some market appeal.
- Overlap with Dow Jones: The GRNY ETF shares eight stocks with the Dow Jones Industrial Average, including well-known tech stocks like Apple, Amazon, Microsoft, and Nvidia, with respective weights of 2.55%, 2.16%, 2.11%, and 2.51% in GRNY, reflecting a similarity in investment strategies.
- Differing Investment Styles: The GRNY ETF employs a rules-based stock selection process focusing on stocks that meet two or more key themes, with current themes including PMI recovery, energy stocks, and cybersecurity, aimed at attracting millennial investors.
- Market Performance Comparison: In contrast to the GRNY ETF, the SPDR Dow Jones Industrial Average ETF has increased by 3.46% year-to-date and 12.08% over the past 52 weeks, showcasing the relative strength of Dow components, which may impact investor confidence in GRNY.
See More
Buffett's Departure and Berkshire's Investment Strategy
- Strong Performance of American Express: American Express, the second-largest holding in Berkshire Hathaway's portfolio at 16.7%, saw card fees increase by 17% year-over-year in Q4 2025, alongside a 10% rise in total sales, demonstrating resilience and growth potential even in tough economic conditions.
- Growth Among Younger Customers: In Q4 2025, millennials and Gen Z accounted for 65% of new global consumer cards, indicating a promising outlook for the company over the next several decades, particularly in attracting younger consumers.
- Diverse Business of Alphabet: As the world's largest search engine, Google leveraged its advertising dominance, with total revenue up 15% and cloud revenue increasing by 48% year-over-year in Q4 2025, showcasing its strong market competitiveness.
- Strategic Importance of AI Investment: Alphabet invested $91 billion in capital expenditures in 2025 and plans to invest $185 billion in AI development, which, despite market concerns, will keep the company competitive in the AI race and open up numerous opportunities.
See More
Investment Opportunities in Network Effect Companies
- Importance of Economic Moats: Long-term investors should focus on companies with durable competitive advantages, known as 'economic moats,' such as high switching costs and barriers to entry, which collectively foster long-term business success.
- Complexity of Platform Business Models: Unlike linear business models, platform business models are more complex as they connect buyers and sellers, and as their user bases grow, the value of their products and services increases, enhancing user retention and reducing competitive risks.
- Network Effects in Payments Industry: American Express connects 160 million merchants with 153 million active cards through its closed-loop system, showcasing strong network effects, while Visa and Mastercard each have billions of cards in circulation globally, further solidifying their market positions.
- Dominance of Internet Giants: Google Search holds a 90% market share in its domain, and as user numbers increase, data collection and algorithm optimization continuously enhance user experience, while Meta and Amazon also benefit from network effects due to their vast user bases.
See More
Divergence in U.S. Consumer Market Intensifies
- Market Divergence: The highest-earning 10% of U.S. households now account for nearly 50% of consumer spending, a significant increase from just over one-third 30 years ago, highlighting a deepening K-shaped recovery that pressures lower-income households.
- Corporate Strategies: Airlines like Delta and United are shifting their profit focus towards high-end markets by leveraging corporate travel and loyalty programs, reflecting a reliance on affluent consumers for revenue generation.
- Price Adjustments: PepsiCo has cut prices on snacks by up to 15% in response to consumer backlash against previous price hikes, indicating a decline in purchasing power among lower-income consumers and forcing companies to adapt their strategies to maintain market share.
- Wage Growth Disparity: Bank of America reports that wage growth for lower- and middle-income households is lagging at 0.9% and 1.6%, respectively, compared to 3.7% for higher-income households, exacerbating the divergence in consumer spending capabilities.
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
Fundstrat Launches GRNY ETF Amid Weak Performance
- Diverse ETF Themes: Fundstrat's GRNY ETF launched in November 2024, encompasses various investment themes including value investing, despite a year-to-date decline of 0.32%, it has risen 18.31% over the past 52 weeks, indicating some market appeal.
- Overlap with Dow Jones: The GRNY ETF shares eight stocks with the Dow Jones Industrial Average, including well-known tech stocks like Apple, Amazon, Microsoft, and Nvidia, with respective weights of 2.55%, 2.16%, 2.11%, and 2.51% in GRNY, reflecting a similarity in investment strategies.
- Differing Investment Styles: The GRNY ETF employs a rules-based stock selection process focusing on stocks that meet two or more key themes, with current themes including PMI recovery, energy stocks, and cybersecurity, aimed at attracting millennial investors.
- Market Performance Comparison: In contrast to the GRNY ETF, the SPDR Dow Jones Industrial Average ETF has increased by 3.46% year-to-date and 12.08% over the past 52 weeks, showcasing the relative strength of Dow components, which may impact investor confidence in GRNY.
See More
Buffett's Departure and Berkshire's Investment Strategy
- Strong Performance of American Express: American Express, the second-largest holding in Berkshire Hathaway's portfolio at 16.7%, saw card fees increase by 17% year-over-year in Q4 2025, alongside a 10% rise in total sales, demonstrating resilience and growth potential even in tough economic conditions.
- Growth Among Younger Customers: In Q4 2025, millennials and Gen Z accounted for 65% of new global consumer cards, indicating a promising outlook for the company over the next several decades, particularly in attracting younger consumers.
- Diverse Business of Alphabet: As the world's largest search engine, Google leveraged its advertising dominance, with total revenue up 15% and cloud revenue increasing by 48% year-over-year in Q4 2025, showcasing its strong market competitiveness.
- Strategic Importance of AI Investment: Alphabet invested $91 billion in capital expenditures in 2025 and plans to invest $185 billion in AI development, which, despite market concerns, will keep the company competitive in the AI race and open up numerous opportunities.
See More
Investment Opportunities in Network Effect Companies
- Importance of Economic Moats: Long-term investors should focus on companies with durable competitive advantages, known as 'economic moats,' such as high switching costs and barriers to entry, which collectively foster long-term business success.
- Complexity of Platform Business Models: Unlike linear business models, platform business models are more complex as they connect buyers and sellers, and as their user bases grow, the value of their products and services increases, enhancing user retention and reducing competitive risks.
- Network Effects in Payments Industry: American Express connects 160 million merchants with 153 million active cards through its closed-loop system, showcasing strong network effects, while Visa and Mastercard each have billions of cards in circulation globally, further solidifying their market positions.
- Dominance of Internet Giants: Google Search holds a 90% market share in its domain, and as user numbers increase, data collection and algorithm optimization continuously enhance user experience, while Meta and Amazon also benefit from network effects due to their vast user bases.
See More
Divergence in U.S. Consumer Market Intensifies
- Market Divergence: The highest-earning 10% of U.S. households now account for nearly 50% of consumer spending, a significant increase from just over one-third 30 years ago, highlighting a deepening K-shaped recovery that pressures lower-income households.
- Corporate Strategies: Airlines like Delta and United are shifting their profit focus towards high-end markets by leveraging corporate travel and loyalty programs, reflecting a reliance on affluent consumers for revenue generation.
- Price Adjustments: PepsiCo has cut prices on snacks by up to 15% in response to consumer backlash against previous price hikes, indicating a decline in purchasing power among lower-income consumers and forcing companies to adapt their strategies to maintain market share.
- Wage Growth Disparity: Bank of America reports that wage growth for lower- and middle-income households is lagging at 0.9% and 1.6%, respectively, compared to 3.7% for higher-income households, exacerbating the divergence in consumer spending capabilities.
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
