Berkshire Hathaway’s $354 billion American Express stake highlights premium cardmaker’s resilience
As of March 2026, the conglomerate holds a 22.5% stake in the credit card giant, which reported a 10% rise in second-quarter revenue driven by millennial and Gen Z spending.
Berkshire Hathaway maintains a significant 22.5% stake in American Express, holding approximately 152 million shares valued at $354 billion as of 31 March 2026. The Omaha-based conglomerate has held the position since the 1990s, aligning with Warren Buffett’s investment philosophy of identifying businesses with wide economic moats and allowing them to compound over long periods. This enduring relationship highlights the institutional confidence in American Express’s premium brand positioning and its ability to target affluent customers while maintaining industry-leading charge-off rates.
The financial institution reported robust performance in the second quarter, recording net revenue of $19.6 billion, a 10% increase year-on-year compared to the same period in 2025. Diluted earnings per share rose 11% during the quarter, reflecting the company’s operational strength. Management expects long-term profit growth to continue at a mid-teens annualized rate, supported by payment volume growth that reached its fastest pace in three years.
This surge in payment volume was largely driven by spending activity from millennial and Generation Z consumers. The company benefits from strong network effects, where increased merchant acceptance expands opportunities for cardholders, and a growing card member base attracts more merchants seeking to capture sales. These dynamics have contributed to a trailing five-year total return of 119% for the stock, as of 6 August.
Despite the strong fundamentals, the stock trades at a forward price-to-earnings ratio of 19.9, suggesting a valuation that is neither a bargain nor excessively expensive. While Berkshire Hathaway’s substantial holding often serves as a signal to the broader market, individual investors should note that the Motley Fool’s Stock Advisor analyst team did not include American Express in their current list of 10 best stocks to buy, despite the company being an advertising partner.
Berkshire Hathaway’s capital allocation strategy has historically resulted in the conglomerate’s stock compounding at an annualized pace of 19.7% during Buffett’s tenure. The continued ownership of American Express reinforces the firm’s focus on high-quality businesses with durable competitive advantages. As the financial sector navigates changing consumer habits, the partnership between the investment giant and the credit card issuer remains a key indicator of stability in the payments industry.
