Buffett Stock Portfolio: Top 10 Stock Picks for 2024

3. American Express Company (NYSE:AXP)

Stake Value as of Q2 2024: $35,105,457,585

American Express Company (NYSE:AXP) is a bank-holding and financial services company, that specializes in payment cards. The stock has had an impressive 2024 so far, with its share price appreciating 44% year-to-date to reach a record-high price of $272.73 per share earlier this month. It is one of the top picks from the Buffet stock portfolio, with the hedge fund having stakes valued at over $35 billion as of June 30.

In Q2 2024, the company posted an all-time high revenue of $16.3 billion, registering a 9% year-over-year growth. Net income for the quarter stood at $3 billion, resulting in earnings per share of $4.15, beating analysts’ expectations of $3.26. The strong results were primarily driven by the company’s premium customer base, which comprises long-tenure, high-spending individuals with excellent credit profiles. American Express continues to lure premium customers toward its superior products, resulting in double-digit card fee growth over the last 24 successive quarters.

The company has also observed a significant increase in its scale of business. Revenues have grown 50% compared to the end of 2021, while card member spending has also expanded by 40%. Cards-in-force are up by 20%, or 20 million, and the number of merchant locations is also up by 30 million, representing around a 50% rise.

American Express Company (NYSE:AXP) has also made several strategic investments in marketing, technology, control management, and value proposition, to enhance its unique membership model through ongoing product innovations. For instance, it regularly refreshes product offerings to add value and retain its attractiveness for customers. The company remains on track to refresh close to 40 existing products by the end of FY 2024.

After solid results in the first half of the year, the company has revised its guidance for the full year and now expects EPS for 2024 to be in the range of $13.30 to $13.80, up from the initial forecast of $12.65 to $13.15. Revenue growth is also expected to be between 9% and 11%. However, net interest income, which grew 20% in Q2, is anticipated to moderate as the year progresses due to an expected dip in loan growth rates.

Overall, the stock’s performance remains strong and continues to increase investor interest. According to Insider Monkey’s database for Q2 2024, 68 hedge funds had investments in the company, up from 66 in the first quarter.