New CEO Greg Abel Omits Two Major Holdings from Core List
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AXP?
Source: Yahoo Finance
- New CEO's Strategic Vision: CEO Greg Abel's 18-page letter to shareholders outlines his management strategy for Berkshire Hathaway, highlighting a long-term bullish outlook on four core holdings—Apple, American Express, Coca-Cola, and Moody's—indicating a focus on stable investments expected to compound over decades.
- Bank Holdings Adjustment: Despite Berkshire's historical support for Bank of America, Abel's omission of it from the core holdings list suggests a cautious stance towards the banking sector, particularly after significant market fluctuations, which may lead to further reductions in bank holdings to mitigate recession risks.
- Energy Investment Dynamics: Abel's failure to mention Chevron as a core holding is notable given Berkshire's recent aggressive acquisitions in energy assets; however, Chevron's strong financial performance and growth potential make it a stock to watch, especially amid shifting global energy demands.
- Market Reaction and Outlook: The letter has sparked investor interest in Berkshire's future investment strategies, particularly regarding the omitted major holdings, prompting a need for close monitoring of the company's responses to economic uncertainties and potential risks and opportunities ahead.
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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: 307.210
Low
280.00
Averages
379.06
High
425.00
Current: 307.210
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 Shows Strong Performance Amid Stock Sell-Off
- Significant Revenue Growth: American Express reported full-year revenue of $72.2 billion for 2025, reflecting a 10% increase, with earnings per share also rising by 10% to $15.38, showcasing the company's robust performance in the premium credit card market despite heightened concerns over AI disruption.
- Strong Q4 Performance: In Q4, revenue reached $19 billion, up 10% year-over-year, with earnings per share increasing by 16% to $3.53, indicating sustained consumer spending, particularly with card member spending rising by 9%, which supports future performance.
- Stable Credit Quality: Although the net write-off rate ticked up to 2.1% in Q4, the overall credit quality remains strong with a full-year net write-off rate of 2%, demonstrating effective risk management for a credit card issuer focused on high-spending customers.
- Aggressive Capital Return Program: American Express returned approximately $7.6 billion to shareholders in 2025, with $5.3 billion through share repurchases and $2.3 billion via dividends, alongside a 16% year-over-year dividend increase, enhancing earnings per share and bolstering investor confidence, even as the stock faces some downward pressure.
See More
Berkshire's New CEO Lists Core Holdings
- Core Holdings Revealed: New CEO Greg Abel identified Apple, American Express, Coca-Cola, and Moody's as core holdings in his letter to shareholders, indicating a strong commitment to long-term investments expected to compound over decades.
- Bank Holdings Reduction: Abel's omission of Bank of America, previously the fourth-largest holding, reflects a cautious stance towards the banking sector, especially after significant reductions, suggesting potential further cuts in bank investments.
- Energy Investment Dynamics: Despite Berkshire's increased investments in energy assets, Abel's failure to list Chevron as a core holding is surprising, potentially indicating a reserved outlook on traditional energy, even though Chevron maintains a solid financial position.
- Market Environment Considerations: Amid growing global economic uncertainties, Berkshire's cash reserves and investment strategies demonstrate vigilance towards potential recessions, which may influence future investment decisions, particularly regarding high-valuation bank stocks.
See More
Berkshire's New CEO Reveals Investment Strategy
- Core Holdings Emphasis: New CEO Greg Abel highlighted Apple, American Express, Coca-Cola, and Moody's as core holdings expected to compound over decades, indicating a strong long-term confidence in these companies amidst a $318 billion equities portfolio.
- Bank Stock Reduction: Despite a historical investment of $5 billion in Bank of America, Abel did not classify it as a core holding and has halved its stake in recent years, reflecting a cautious stance towards the banking sector, possibly due to recession concerns.
- Energy Investment Dynamics: Chevron, which Abel did not mention, has attracted Berkshire's interest in recent years; although it sold some shares in 2022, it has increased its position since Q2 2023, indicating ongoing confidence in energy assets despite market volatility.
- Market Environment Impact: Amidst fluctuating oil prices and tensions in the Middle East, Chevron's strong financial health and dividend yield position it as a potential defensive investment for Berkshire, even though Abel did not categorize it as a core holding, its market performance remains noteworthy.
See More
New CEO Greg Abel Omits Two Major Holdings from Core List
- New CEO's Strategic Vision: CEO Greg Abel's 18-page letter to shareholders outlines his management strategy for Berkshire Hathaway, highlighting a long-term bullish outlook on four core holdings—Apple, American Express, Coca-Cola, and Moody's—indicating a focus on stable investments expected to compound over decades.
- Bank Holdings Adjustment: Despite Berkshire's historical support for Bank of America, Abel's omission of it from the core holdings list suggests a cautious stance towards the banking sector, particularly after significant market fluctuations, which may lead to further reductions in bank holdings to mitigate recession risks.
- Energy Investment Dynamics: Abel's failure to mention Chevron as a core holding is notable given Berkshire's recent aggressive acquisitions in energy assets; however, Chevron's strong financial performance and growth potential make it a stock to watch, especially amid shifting global energy demands.
- Market Reaction and Outlook: The letter has sparked investor interest in Berkshire's future investment strategies, particularly regarding the omitted major holdings, prompting a need for close monitoring of the company's responses to economic uncertainties and potential risks and opportunities ahead.
See More
Zacks Research Daily: Analysis on PG, AXP, TJX and More
- PG Performance: Procter & Gamble (PG) shares have declined 1.8% over the past six months, slightly outperforming the 1.9% drop in the consumer products sector, as it faces a $400 million tariff headwind and a $250 million increase in financing costs, showcasing the resilience of its brand portfolio and operational strategy.
- AXP Financial Challenges: American Express (AXP) shares have fallen 5.1% in the last six months, compared to a 24.8% decline in the financial services industry; despite high expenses and credit loss provisions, strong spending growth from Millennials and Gen Z indicates its market adaptability.
- TJX Growth Potential: TJX Companies has outperformed the discount retail sector with a 14.9% stock increase over six months, benefiting from its robust off-price model and consistent customer traffic, with future global expansion and a solid financial position further supporting growth.
- Microcap Performance: Genie Energy (GNE) shares have underperformed with a 2.2% decline over six months; despite risks from rising commodity costs, its retail unit is expanding its customer base, setting the stage for a margin rebound after low-margin contracts expire in Q4 2025.
See More
Buffett's Recommended Investment Strategy for Wealth Building
- Portfolio Recommendations: Throughout his career, Buffett invested in various stocks, including market giants like Apple, American Express, and Bank of America, suggesting that investors consider these long-term holdings for wealth growth.
- Easy Investment Option: The investment Buffett recommends is an S&P 500 index fund, such as the Vanguard S&P 500 ETF (VOO), which requires no specialized skills, making it suitable for both novice and seasoned investors who can hold it effortlessly while focusing on other matters.
- Compounding Effect: Assuming a 10% annual return from the S&P 500, if an investor starts with $900 and adds $300 monthly for 35 years, the investment could exceed $1 million, showcasing the power of compounding.
- Long-Term Holding Strategy: Buffett directed a trustee to invest 90% of his cash into an S&P 500 index fund upon his death, emphasizing its appeal for retail investors, and although he sold some holdings in Q4 2024, this does not diminish its long-term value.
See More
American Express Shows Strong Performance Amid Stock Sell-Off
- Significant Revenue Growth: American Express reported full-year revenue of $72.2 billion for 2025, reflecting a 10% increase, with earnings per share also rising by 10% to $15.38, showcasing the company's robust performance in the premium credit card market despite heightened concerns over AI disruption.
- Strong Q4 Performance: In Q4, revenue reached $19 billion, up 10% year-over-year, with earnings per share increasing by 16% to $3.53, indicating sustained consumer spending, particularly with card member spending rising by 9%, which supports future performance.
- Stable Credit Quality: Although the net write-off rate ticked up to 2.1% in Q4, the overall credit quality remains strong with a full-year net write-off rate of 2%, demonstrating effective risk management for a credit card issuer focused on high-spending customers.
- Aggressive Capital Return Program: American Express returned approximately $7.6 billion to shareholders in 2025, with $5.3 billion through share repurchases and $2.3 billion via dividends, alongside a 16% year-over-year dividend increase, enhancing earnings per share and bolstering investor confidence, even as the stock faces some downward pressure.
See More
Berkshire's New CEO Lists Core Holdings
- Core Holdings Revealed: New CEO Greg Abel identified Apple, American Express, Coca-Cola, and Moody's as core holdings in his letter to shareholders, indicating a strong commitment to long-term investments expected to compound over decades.
- Bank Holdings Reduction: Abel's omission of Bank of America, previously the fourth-largest holding, reflects a cautious stance towards the banking sector, especially after significant reductions, suggesting potential further cuts in bank investments.
- Energy Investment Dynamics: Despite Berkshire's increased investments in energy assets, Abel's failure to list Chevron as a core holding is surprising, potentially indicating a reserved outlook on traditional energy, even though Chevron maintains a solid financial position.
- Market Environment Considerations: Amid growing global economic uncertainties, Berkshire's cash reserves and investment strategies demonstrate vigilance towards potential recessions, which may influence future investment decisions, particularly regarding high-valuation bank stocks.
See More
Berkshire's New CEO Reveals Investment Strategy
- Core Holdings Emphasis: New CEO Greg Abel highlighted Apple, American Express, Coca-Cola, and Moody's as core holdings expected to compound over decades, indicating a strong long-term confidence in these companies amidst a $318 billion equities portfolio.
- Bank Stock Reduction: Despite a historical investment of $5 billion in Bank of America, Abel did not classify it as a core holding and has halved its stake in recent years, reflecting a cautious stance towards the banking sector, possibly due to recession concerns.
- Energy Investment Dynamics: Chevron, which Abel did not mention, has attracted Berkshire's interest in recent years; although it sold some shares in 2022, it has increased its position since Q2 2023, indicating ongoing confidence in energy assets despite market volatility.
- Market Environment Impact: Amidst fluctuating oil prices and tensions in the Middle East, Chevron's strong financial health and dividend yield position it as a potential defensive investment for Berkshire, even though Abel did not categorize it as a core holding, its market performance remains noteworthy.
See More
New CEO Greg Abel Omits Two Major Holdings from Core List
- New CEO's Strategic Vision: CEO Greg Abel's 18-page letter to shareholders outlines his management strategy for Berkshire Hathaway, highlighting a long-term bullish outlook on four core holdings—Apple, American Express, Coca-Cola, and Moody's—indicating a focus on stable investments expected to compound over decades.
- Bank Holdings Adjustment: Despite Berkshire's historical support for Bank of America, Abel's omission of it from the core holdings list suggests a cautious stance towards the banking sector, particularly after significant market fluctuations, which may lead to further reductions in bank holdings to mitigate recession risks.
- Energy Investment Dynamics: Abel's failure to mention Chevron as a core holding is notable given Berkshire's recent aggressive acquisitions in energy assets; however, Chevron's strong financial performance and growth potential make it a stock to watch, especially amid shifting global energy demands.
- Market Reaction and Outlook: The letter has sparked investor interest in Berkshire's future investment strategies, particularly regarding the omitted major holdings, prompting a need for close monitoring of the company's responses to economic uncertainties and potential risks and opportunities ahead.
See More
Zacks Research Daily: Analysis on PG, AXP, TJX and More
- PG Performance: Procter & Gamble (PG) shares have declined 1.8% over the past six months, slightly outperforming the 1.9% drop in the consumer products sector, as it faces a $400 million tariff headwind and a $250 million increase in financing costs, showcasing the resilience of its brand portfolio and operational strategy.
- AXP Financial Challenges: American Express (AXP) shares have fallen 5.1% in the last six months, compared to a 24.8% decline in the financial services industry; despite high expenses and credit loss provisions, strong spending growth from Millennials and Gen Z indicates its market adaptability.
- TJX Growth Potential: TJX Companies has outperformed the discount retail sector with a 14.9% stock increase over six months, benefiting from its robust off-price model and consistent customer traffic, with future global expansion and a solid financial position further supporting growth.
- Microcap Performance: Genie Energy (GNE) shares have underperformed with a 2.2% decline over six months; despite risks from rising commodity costs, its retail unit is expanding its customer base, setting the stage for a margin rebound after low-margin contracts expire in Q4 2025.
See More
Buffett's Recommended Investment Strategy for Wealth Building
- Portfolio Recommendations: Throughout his career, Buffett invested in various stocks, including market giants like Apple, American Express, and Bank of America, suggesting that investors consider these long-term holdings for wealth growth.
- Easy Investment Option: The investment Buffett recommends is an S&P 500 index fund, such as the Vanguard S&P 500 ETF (VOO), which requires no specialized skills, making it suitable for both novice and seasoned investors who can hold it effortlessly while focusing on other matters.
- Compounding Effect: Assuming a 10% annual return from the S&P 500, if an investor starts with $900 and adds $300 monthly for 35 years, the investment could exceed $1 million, showcasing the power of compounding.
- Long-Term Holding Strategy: Buffett directed a trustee to invest 90% of his cash into an S&P 500 index fund upon his death, emphasizing its appeal for retail investors, and although he sold some holdings in Q4 2024, this does not diminish its long-term value.
See More
