American Express Company

New York Stock Exchange
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Somewhat Bullish +45

American Express Company (AXP) Remains One Of Warren Buffett’s Oldest Stock Picks

📈 Warren Buffett has held American Express (AXP) since 1964, with Berkshire Hathaway currently owning 151 million shares valued at $45.8 billion.

💰 AXP reported Q4 earnings of $3 billion in net income and $18.91 billion in revenue, beating market expectations.

🚀 The company's CFO stated that strong earnings allow for increased spending on marketing and technology initiatives.

🏦 Giverny Capital Asset Management initiated a new position in AXP at $294 per share in March 2026.

💳 American Express earns primarily from transaction fees and annual dues rather than interest income on revolving credit balances.

📉 Giverny Capital warns of potential risks to high-net-worth consumers due to income inequality, AI disruption, and federal budget deficits.

🔍 DBZ Bank upgraded AXP to a Buy rating with a $375 price target on June 18th.

📊 The article notes that AXP serves a customer base of prime borrowers who often pay hundreds annually for rewards privileges.

Bullish Signals
  • American Express reported earnings of $3 billion and revenue of $18.91 billion, which were stronger than expected.
  • The company's CFO indicated that robust earnings provide room to invest in marketing and technology.
  • DBZ Bank upgraded the stock to a Buy rating with a price target of $375 per share.
  • Giverny Capital established a new position in AXP, citing its premier status brand and lucrative rewards model.
Risk Factors
  • Giverny Capital expresses concern that macroeconomic factors like income inequality and AI disruption could negatively impact high-net-worth cardholders.
  • The firm suggests that American Express may have lower upside potential compared to certain AI stocks in the current market environment.
Full Analysis
American Express (AXP) is highlighted as one of Warren Buffett's oldest and most enduring stock picks, with Berkshire Hathaway maintaining a stake of 151 million shares valued at approximately $45.8 billion. The company recently reported strong financial results, posting $18.91 billion in revenue and $3 billion in net income, which exceeded analyst expectations. During the earnings call, CFO Christophe Le Caillec noted that the stronger-than-expected earnings provide the company with flexibility to invest in marketing and technology initiatives. The article details AXP's unique business model, where it generates significant revenue from transaction fees and annual dues paid by high-net-worth cardholders rather than interest on revolving balances. Giverny Capital Asset Management established a new position in American Express in March 2026 at $294 per share. While the firm acknowledges AXP's status as a premier brand serving affluent customers, it expresses concern regarding potential macroeconomic headwinds such as income inequality and AI disruption affecting high-net-worth individuals. Despite Giverny's preference for AI stocks with higher upside potential, the article underscores AXP's resilience and its position in the market. The piece concludes by directing readers to further reports on other investment opportunities, including Cathie Wood's portfolio.