Down More Than the S&P 500 and Nasdaq, Is Warren Buffett-Led Berkshire Hathaway's Second Largest Holding a Buy Now?
Portfolio Pulse from
American Express (AXP) is experiencing a year-to-date stock decline, presenting a potential buying opportunity for long-term investors. The company has a unique business model targeting affluent customers, strong buyback strategy, and consistent revenue growth. Despite current market challenges, AXP remains an attractive investment with a low P/E ratio and steady cash flow.
April 16, 2025 | 2:00 am
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POSITIVE IMPACT
AXP is trading at an attractive valuation with a P/E ratio of 17.9 and price-to-free cash flow of 14.8. The company has reduced share count by 30% over the last decade and recently increased dividends by 17%.
Attractive valuation metrics, consistent growth strategy, and Warren Buffett's long-term confidence suggest potential stock appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Berkshire has maintained its significant AXP stake, which now represents 14.5% of its equity portfolio. The investment demonstrates long-term confidence in American Express's business model.
Berkshire's continued investment signals potential long-term value in American Express.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80