5 Best Stocks to Buy According to Warren Buffett

3. American Express Company (NYSE: AXP)

Buffet’s Stake Value: $21,443,817,000
Percent of Warren Buffett’s 13F Portfolio: 7.92%
Number of Hedge Fund Holders: 53

American Express Company (NYSE: AXP) is a financial services corporation with over 114 million cardholders and customers in around 40 countries. Warren Buffett’s Berkshire Hathaway has over 151.6 million shares in the company, worth $21.4 billion, as of Q1 2021. Berkshire has owned American Express stock for more than 25 years, making it one of the best stocks to buy according to Warren Buffett.

American Express Company (NYSE: AXP) has a long history of paying dividends, with a 9.1 % per year growth in its distribution since 2011. The company will pay a quarterly dividend of $0.43 per share on 10^th August 2021.

Bretton Fund, in its Q4 2020 Investor Letter, has highlighted a few stocks, including American Express Company (NYSE: AXP). Here is what the fund said.

“American Express has elements of both a bank (it extends credit card loans) and a payments processor (most of its revenue is fees from cardholders and merchants) and was hit pretty hard by Covid-19, though we expect most of the impact will be transitory. It has a relatively diversified customer base overall, but a meaningful portion of its card activity is from business travel, which…there wasn’t a lot of last year. Similar to the banks, American Express recognized loan losses in anticipation of large defaults, though it’s not clear all of that will come to pass. Its stock returned -1.1%, while earnings per share were down 53%.”