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Berkshire Hathaway (NYSE: BRK.A, BRK.B) has increased its stake in American Express (NYSE: AXP) to 151.6 million shares, valued at approximately $50 billion, making it the company’s second-largest equity holding. This stake accounts for about 20% of Berkshire’s equity portfolio and has remained unchanged for decades.
In 2024, American Express reported a revenue increase of 9% year-over-year to $65.9 billion, with earnings per share climbing 25% to $14.01. The company also returned $7.9 billion to shareholders through share repurchases and dividends during the same year. Recent quarterly results indicate continued growth, with second-quarter revenue rising 9% and earnings per share increasing 17% year-over-year.
Despite economic risks, including potential credit losses and competition from banks and buy-now-pay-later providers, analysts believe American Express is well-positioned for the long term, reflecting Warren Buffett’s enduring confidence in the brand.
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