Warren Buffett’s Top 5 Stock Picks

3. American Express Company (NYSE:AXP)

Percentage of Berkshire Hathaway’s 13F Portfolio: 8.65%

Berkshire Hathaway’s Stake Value: $25,399,340,000

Number of Hedge Fund Holders: 57

Berkshire Hathaway is the biggest stakeholder of American Express Company (NYSE:AXP) as of the end of the September quarter. Warren Buffett’s conglomerate owned nearly 152 million shares of the stock worth $25 billion between June and September. According to the 13F filings tracked by Insider Monkey, the value of Berkshire’s holding in American Express Company (NYSE:AXP) has climbed by nearly $10 billion from a year ago as the stock returned 30% in the last twelve months. 

Overall, 57 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in the New York-based company at the end of the third quarter of 2021.

In October, the New York-based credit card company announced its Q3 earnings and the company’s year over year revenue climbed 25% to $10.9 billion. The increase in sales in the third quarter is supported by a 19% boost in consumer and small business spending on goods and services. CEO Stephen Squeri of American Express Company (NYSE:AXP) recently announced that the bank’s operations performed better in October and November than in Q3, a trend he expects to persist into 2022.

Meanwhile, Deutsche Bank analyst Meng Jiao kept a Buy rating on American Express Company (NYSE:AXP) on October 25 post-earnings result. Jiao increased his price target for the bank stock to $200 from $190 previously.

In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned American Express Company (NYSE:AXP) and discussed its stance on the firm. Here is what the fund said:

“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumers and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”