Berkshire Hathaway's American Express Stake Reaches 22.5% Amid Shift to Tech Investments
Berkshire Hathaway's stake in American Express has surpassed 22.5% of outstanding shares, demonstrating Warren Buffett's long-term commitment to the premium credit card franchise.
The conglomerate now owns approximately 152 million shares of American Express, a holding that has generated significant returns over the past five years.
Under Buffett's philosophy, businesses worthy of multi-decade commitments possess durable competitive advantages and network effects, which American Express exhibits through its premium brand and merchant acceptance.
The valuation is no longer a clear bargain, with a forward price-to-earnings ratio of about 19.9, but the stake remains a valuable case study for identifying high-quality companies with lasting brand power.