Buffett's American Express Stake Could Yield Double Returns

Warren Buffett's Berkshire Hathaway owns a significant stake in American Express (NYSE: AXP), making it their second-largest holding. The conglomerate holds over $46 billion worth of shares, which is approximately 22.5% of the company's outstanding stock.

Currently, American Express trades at an 18.6 price-to-earnings ratio, a multiple that could expand in the future according to management's projections. They expect mid-teens earnings growth over the long term, driven by key catalysts such as strong profit gains and valuation expansion.

The company's stock has been trading at a discount, currently sitting 21% below its all-time high from December 2025. However, with expected earnings growth and potential valuation expansion, investors may see their returns double in five years. For instance, if an investor puts $1,000 into American Express now, they could potentially see it grow to $2,000 by late 2031.