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Berkshire Hathaways 22.5% Stake in American Express Highlights Enduring Value Play
As of March 31, 2024, Berkshire Hathaway owns nearly 152 million shares of American Express, translating into a 22.5 % equity position. The holding, first added in the 1990s, has yielded a cumulative return of 119 % over the past five years.
Berkshire’s long‑term approach is on full display here. Warren Buffett’s capital‑allocation choices have produced a compound annual growth rate of 19.7 % for the conglomerate’s stock—well above the S&P 500 during the same period—by buying high‑quality businesses and allowing them to compound over decades.
American Express, a bank‑holding company that runs a global payment‑card network, reported 141.2 million cards in force and more than $1.7 trillion in purchase volume on its network as of December 31, 2023. Its premium brand targets affluent consumers and benefits from a network effect that expands merchant acceptance as card membership grows.
The AXP stake fits into Berkshire’s broader focus on financial services. In 2025, that sector accounted for the largest share of the company’s investment dollars, a trend that has continued into 2026. Berkshire’s $354 billion portfolio includes dozens of positions across multiple industries.
From a valuation standpoint, American Express trades at a forward price‑to‑earnings ratio of 19.9. While not considered a bargain, the ratio sits within the range that market observers view as fair. The company’s earnings derive from a dual revenue model that captures both card interest and merchant fees.
Individual investors who follow Buffett often see his holdings as a signal of quality. The American Express position highlights the firm’s perceived economic moat, brand strength, and profitability, even though the current valuation suggests the stock may not be undervalued.
The company’s recent performance, coupled with Berkshire’s long‑term ownership, underscores the stability of its business model. American Express’s premium positioning and network effect continue to support its market share and fee structure.
Looking ahead, American Express will report its Q4 2026 earnings in early September. Berkshire Hathaway will release its annual report in the coming weeks, detailing any changes to its holdings. Investors will monitor the company’s earnings guidance, dividend policy, and potential capital‑allocation decisions that could affect the stock.
In summary, Berkshire Hathaway’s 22.5 % stake in American Express remains a flagship holding that reflects the conglomerate’s focus on durable, high‑quality businesses. The investment continues to generate strong returns for Berkshire and serves as a reference point for individual investors evaluating the payments sector.
Berkshire’s long‑term approach is on full display here. Warren Buffett’s capital‑allocation choices have produced a compound annual growth rate of 19.7 % for the conglomerate’s stock—well above the S&P 500 during the same period—by buying high‑quality businesses and allowing them to compound over decades.
American Express, a bank‑holding company that runs a global payment‑card network, reported 141.2 million cards in force and more than $1.7 trillion in purchase volume on its network as of December 31, 2023. Its premium brand targets affluent consumers and benefits from a network effect that expands merchant acceptance as card membership grows.
The AXP stake fits into Berkshire’s broader focus on financial services. In 2025, that sector accounted for the largest share of the company’s investment dollars, a trend that has continued into 2026. Berkshire’s $354 billion portfolio includes dozens of positions across multiple industries.
From a valuation standpoint, American Express trades at a forward price‑to‑earnings ratio of 19.9. While not considered a bargain, the ratio sits within the range that market observers view as fair. The company’s earnings derive from a dual revenue model that captures both card interest and merchant fees.
Individual investors who follow Buffett often see his holdings as a signal of quality. The American Express position highlights the firm’s perceived economic moat, brand strength, and profitability, even though the current valuation suggests the stock may not be undervalued.
The company’s recent performance, coupled with Berkshire’s long‑term ownership, underscores the stability of its business model. American Express’s premium positioning and network effect continue to support its market share and fee structure.
Looking ahead, American Express will report its Q4 2026 earnings in early September. Berkshire Hathaway will release its annual report in the coming weeks, detailing any changes to its holdings. Investors will monitor the company’s earnings guidance, dividend policy, and potential capital‑allocation decisions that could affect the stock.
In summary, Berkshire Hathaway’s 22.5 % stake in American Express remains a flagship holding that reflects the conglomerate’s focus on durable, high‑quality businesses. The investment continues to generate strong returns for Berkshire and serves as a reference point for individual investors evaluating the payments sector.
