Berkshire Hathaway Has Nearly 14% of Its $359 Billion Portfolio Invested in This Winning Stock That's Doubled in 5 Years

Key Points Berkshire has a sizable stake in American Express, which has grown to be its second-biggest holding. American Express has positioned its brand to attract an affluent customer base with high spending power. With the stock trading at a P/E ratio of 19.5, it appears to be a compelling buying opportunity. 10 stocks we like better than American Express › Berkshire Hathaway sports a massive market capitalization of $1.1 trillion. But it's worth pointing out that $359 billion of this is represented by its huge public equities portfolio. These stocks have a big effect on the company's performance. Among these holdings, Apple is still at the top of the list. This is despite notable selling happening in recent years. There's another position that deserves some attention. It represents nearly 14% of Berkshire Hathaway's portfolio. The conglomerate has a 22.5% stake in the business whose shares have more than doubled in the past five years (as of Sept. 10). Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » This financial stock is a historical winner, and investors might want to consider buying it right now. Image source: The Motley Fool. Passing the quality test The second-largest holding in Berkshire Hathaway's portfolio is American Express (NYSE: AXP) . Investors know this company as a leading credit card issuer and payments network. It also offers various banking products and services. This business passes the quality test that Warren Buffett and his successor, Greg Abel, use to operate their capital allocation policy. American Express has built up a wide economic moat that cements its robust competitive position in the financial services industry. One key aspect of the moat is American Express's premium brand, which exudes status, exclusivity, and luxury. The company targets affluent customers for its card offerings. These people value the perks, benefits, and rewards that they get. For American Express, acquiring these types of customers means industry-leading charge-off rates, as there's a tighter grip on credit risk. Similarly to Visa and Mastercard , American Express runs the underlying payments infrastructure. This connects merchants and consumers on its platform. Consequently, there's a network effect that gets stronger as the number of merchant acceptance locations and cardholders increases over time. Durable financial gains American Express isn't going to turn any heads with its growth numbers. However, the financial gains are as durable as they come. Even though this is a very mature business, the leadership team believes that over the long term, American Express can grow revenue by 10% per year. Management also thinks that earnings per share can increase at a "mid-teens" annualized rate. This is an encouraging outlook. The most notable trend propelling sales figures is the rise of the cashless economy. As a greater number of transactions are conducted via credit cards and other digital means, it presents a tailwind for American Express. This helps result in more payment activity that flows through its network. During the second quarter, American Express processed $456 billion worth of volume. This was up 9% year over year. Furthermore, the business is doing a great job bringing on new card members. In the latest quarter, 65% of new accounts globally came from the millennial and Gen Z cohorts, younger consumers who have higher lifetime value. These cardholders have shown a willingness to pay higher fees, supporting the argument that American Express's premium cards have pricing power . The popular Platinum card was refreshed last September, resulting in a $200 annual fee increase to $895. "Our Platinum portfolio is now the fastest-growing in our U.S. consumer business," CEO Steve Squeri said on the Q2 2026 earnings call. Shares trade well off their peak Despite doubling in the past five years, the stock currently trades 17% off its record from December 2025. The valuation today presents a compelling entry point for prospective investors. Shares can be purchased at a price-to-earnings ratio of 19.5. I believe this makes American Express a business that every long-term investor should consider adding to their portfolio. Should you buy stock in American Express right now? Before you buy stock in American Express, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294 !* Now, it’s worth noting Stock Advisor’s total average return is 950 % — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 13, 2026. American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy .

Berkshire has a sizable stake in American Express, which has grown to be its second-biggest holding.

American Express has positioned its brand to attract an affluent customer base with high spending power.

With the stock trading at a P/E ratio of 19.5, it appears to be a compelling buying opportunity.

Berkshire Hathaway sports a massive market capitalization of $1.1 trillion. But it's worth pointing out that $359 billion of this is represented by its huge public equities portfolio. These stocks have a big effect on the company's performance. Among these holdings, Apple is still at the top of the list. This is despite notable selling happening in recent years.

There's another position that deserves some attention. It represents nearly 14% of Berkshire Hathaway's portfolio. The conglomerate has a 22.5% stake in the business whose shares have more than doubled in the past five years (as of Sept. 10).

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

This financial stock is a historical winner, and investors might want to consider buying it right now.