Buffett's American Express Betting Big on 2X Returns

Warren Buffett's Berkshire Hathaway owns dozens of stocks in its massive $356 billion portfolio, but there is a notable concentration among a few names. Among those is American Express (AXP), the conglomerate's second-biggest holding.

Berkshire Hathaway owns 22.5% of American Express' outstanding shares, currently valued at $46.3 billion. The stock trades 21% below its all-time high from December 2025, as of September 25.

Valuation upside is a key driver of shareholder returns for American Express. It can be bought at a price-to-earnings (P/E) ratio of 18.6, which is 23% cheaper than at the start of 2026.

In five years, it's not unreasonable to assume that the P/E multiple will expand to 20, adding some upside to the outlook. American Express needs to execute well, and management has forecasted 'mid-teens' earnings-per-share growth over the long term.