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) is a leading bank holding company that provides a comprehensive digital payments platform that includes credit cards, charge cards, and financing options. One of the primary reasons it ranks as an industry leader is due to its premium brand. Customers with higher incomes who can spend more than the typical consumer are drawn to the company because of its reputation.

On January 27, RBC Capital Markets reaffirmed its Outperform rating for American Express Company (NYSE:AXP) and raised its price target from $330 to $350. The adjustment came as a response to the company’s recent fourth-quarter earnings report, which highlighted a number of key performance metrics. According to RBC, American Express’ core results were strong, with revenue rising 9.3% annually to $60.76 billion, fueling positive consumer spending trends. This occurred in the context of higher costs, which the analysts believed were reasonable. The credit quality was also described as extremely stable, and the provisions were slightly lower than anticipated.

American Express Company (NYSE:AXP) was highlighted by GreensKeeper Asset Management in its Q3 2024 investor letter:

“American Express Company (NYSE:AXP) was our second-largest contributor this quarter, with a return of +17.1%. AXP continues to invest in its customers beyond traditional credit card rewards, recently enhancing its Global Dining Access to provide Platinum cardholders with exclusive reservations at premier restaurants worldwide. This focus on unique experiences has attracted a younger demographic, with millennials and Gen Z driving most of the customer acquisition and card spending growth in recent quarters. Exclusive events are more challenging to replicate than standard point reward systems, presenting a challenge for competing card issuers that lack AXP’s scale and concentrated base of affluent consumers. AXP has fine-tuned its offerings over decades to strengthen its network effect and shows no signs of slowing down.”