Warren Buffett’s 10 Longest-Held Stocks

2. American Express Company (NYSE:AXP)

Warren Buffett’s First Major Purchase: 1991

Berkshire Hathaway’s stake in Q3 2024: $41.1 billion

American Express Company (NYSE:AXP) provides a comprehensive digital payments platform, offering secure and convenient transaction solutions through its range of credit cards, charge cards, and financing products. Its business has thrived amid a strong U.S. economy, making it the second-largest holding in Berkshire Hathaway’s portfolio at the close of Q3 2024.

In the third quarter of 2024, American Express Company (NYSE:AXP) reported impressive financial results, with earnings per share of $3.49 and revenues reaching $16.6 billion, an 8% year-over-year increase. The company also raised its full-year EPS guidance to between $13.75 and $14.05, up from the previous range of $13.30 to $13.80, and expects revenue growth of around 9%. While net interest income surged 20% in Q2, it is expected to moderate as the year progresses.

On October 14, Monness, Crespi, Hardt & Co. maintained its Buy rating on American Express Company (NYSE:AXP) shares and raised the price target to $300, up from $265, citing the company’s strong customer base and its ability to navigate a challenging spending environment effectively.

Artisan Select Equity Fund stated the following regarding American Express Company (NYSE:AXP) in its first quarter 2024 investor letter:

“American Express Company (NYSE:AXP) shares rose 22% this quarter. This is an interesting case study given our earlier discussion about inflation. American Express operates one of the largest credit card networks in the world. Its revenue is largely a function of a fee rate applied to the dollar value of goods and services that are transacted through its network. That dollar value is, of course, nominal. As inflation pushes up the value of those goods and services as it has for the past few years, American Express will capture that value through its fee structure. The past few years inflation has clearly been a benefit. Aside from its inherent inflation protection, the business is a very strong one. Payments continue to shift toward electronic forms, benefiting American Express. It also has a strong brand that attracts loyal and highly profitable customers that are the envy of the industry. Recent results have been strong with revenues moving nicely ahead of GDP.”