**American Express’s Stake in Berkshire Hathaway**
Berkshire Hathaway’s stake in American Express has increased to approximately 24% thanks to stock buybacks, now valued at $49.2 billion. This investment stands as the company’s second largest holding, surpassed only by Apple. In contrast to Berkshire’s recent reductions in other financial stocks such as Visa and Mastercard, American Express continues to be viewed as a long-term compounder, reinforcing confidence among investors.
**Performance Metrics and Market Position**
Year-to-date, American Express has underperformed compared to Visa and Mastercard. However, the company forecasts a 10% year-over-year revenue growth by 2026, driven by record highs in revenue and earnings, despite rising expenses. American Express’s price-to-earnings (P/E) ratio is currently at 19.6, significantly lower than its competitors, reflecting investor perceptions of its business model and market dynamics.
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