Berkshire Hathaway holds 22.5% stake in American Express

Berkshire Hathaway now owns more than 20 % of American Express, holding 152 million shares that give the conglomerate a 22.5 % stake in the credit‑card firm. The holding, recorded on March 31 , 2024, is part of Berkshire’s $354 billion portfolio and has been a long‑term position since the 1990s. The move adds a high‑profile name to Amex’s investor list and signals that the company remains a core part of Buffett’s strategy.

Warren Buffett’s track record of long‑term compounding—19.7 % annualized growth for Berkshire—makes his approvals hard to ignore. He looks for businesses with durable economic moats, strong brands, and network effects that keep customers and merchants locked in. Amex fits that mold: a premium brand that attracts affluent cardholders and a growing merchant network that expands sales opportunities for both sides. Buffett’s ownership suggests the company meets those criteria, giving the stock a stamp of quality that many individual investors watch for.

Amex’s recent numbers support that narrative. In the second quarter, the company posted $19.6 billion in net revenue, up 10 % year over year, and saw payment volume grow at the fastest rate in three years. Over the past five years, Berkshire’s stake has returned 119 %, a strong performance for a mature payments firm. The stock trades at a forward price‑to‑earnings ratio of 19.9, which is neither a bargain nor a premium in today’s market. Some investors may pause because of the valuation, but the company’s fundamentals and Buffett’s backing remain attractive.

For individual investors, the key takeaway is that Amex is a high‑quality, high‑moat business that has earned a spot in Berkshire’s portfolio. If the stock’s price moves into a more attractive range, it could be worth adding to a diversified portfolio. Until then, watching Amex’s earnings, network growth, and any valuation shifts will help gauge whether Buffett’s endorsement translates into a good buy for the average investor.