American Express Faces Trust Test as Berkshire Hathaway Stakes Claim

American Express has drawn attention after Berkshire Hathaway highlighted it as a key value holding. Despite being down 12.9% year to date, the stock's long-term total return figures remain positive.

The company's recent trading has been choppy, with the share price down 5.2% over the past month and 12.9% year to date. However, its 3-year total shareholder return of 105.3% and 5-year total shareholder return of 110.5% are firmly positive.

This suggests that long-term holders have been rewarded while near-term sentiment softens ahead of the next earnings update. American Express has pulled back after a strong multiyear run, leaving investors at a fork in the road: lean into the weakness now or wait for a cheaper entry as valuation work sharpens the picture.

The company's fair value is estimated to be $444.11, which is higher than its current price of $324.69. However, an anti-money-laundering investigation and any shift in American Express' capital requirements could undercut this story.