American Express: A Key Performer in Berkshire Hathaway’s Portfolio
$AXP
American Express (NYSE:AXP) remains a resilient component in Berkshire Hathaway’s portfolio. Known for its closed-loop credit card network, the company also provides a wide range of banking services. This self-reliant model allows American Express to serve an affluent customer base, offering rewarding programs and perks that foster strong loyalty.
In 2024, American Express reported a 9% year-over-year increase in revenues and a 28% rise in earnings per share (EPS). Its diverse revenue streams, including card fees and interest income from deposits, support this growth. Such a multifaceted business model aligns with the investment principles of Berkshire Hathaway, led by Warren Buffett.
With a 58% increase in stock value, American Express continues to be a performer. The company also pays dividends, adding to its financial appeal. As inflation stabilizes, the company is positioned to see an increase in credit card usage and banking activities in 2025, potentially driving further financial success.
Berkshire Hathaway also holds a smaller stake in Visa (NYSE:V), which shares many of the investment qualities Buffett values. Visa, the world’s largest credit card network, plays an essential role in global financial transactions. Its low capital expenditure model allows for high-profit margins, with Visa achieving a 55% profit margin in fiscal 2024. Visa continues to innovate, developing new partnerships and products to maintain its crucial role in the global economy.
Visa’s stock gained 22% in 2024 and has consistently outperformed the market. With consumer spending expected to rise, Visa is positioned to perform well again in 2025.
Amazon (NASDAQ:AMZN), another key player in Berkshire Hathaway’s portfolio, is a leader in U.S. e-commerce and global cloud computing infrastructure. The company is now focusing on generative artificial intelligence (AI), which Amazon’s CEO, Andy Jassy, views as a significant growth opportunity. Since Berkshire Hathaway’s investment in Amazon in 2019, the stock has risen over 130%, surpassing the S&P 500’s 97% increase during the same period.
Amazon’s dual focus on e-commerce and AI continues to drive its success, with the global shift to cloud-based solutions presenting significant growth potential. This positions Amazon for strong market performance in 2025.
American Express, Visa, and Amazon exemplify companies that thrive by adapting to market dynamics and evolving consumer needs. With resilient business models, strategic innovations, and strong financial performances, they align with Berkshire Hathaway’s investment philosophy focused on long-term growth.
**DISCLAIMER: THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS INVESTMENT ADVICE. INVESTING INVOLVES RISK, INCLUDING THE POTENTIAL LOSS OF PRINCIPAL. READERS ARE ENCOURAGED TO CONDUCT THEIR OWN RESEARCH AND CONSULT WITH A QUALIFIED FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT DECISIONS.**