American Express is solidifying its position in the financial services sector, aided by a significant investment strategy. Berkshire Hathaway, under the stewardship of Warren Buffett, has amassed a stake in the company valued at over $53 billion, representing 22.1% of American Express’s outstanding shares. This investment makes American Express the second-largest holding in the Berkshire portfolio after Apple, accounting for 16.4% of the firm’s total equity.
Buffett has consistently praised American Express, highlighting its strong global brand, robust dividends, and enduring market leadership. These attributes align with Buffett’s investment philosophy, which favors cash-rich companies that play a crucial role in the economy. The fundamentals that make American Express a staple in Buffett’s portfolio remain intact, contributing to its status as a buy option today.
The company continues to focus on its future growth through considerable investments aimed at reinforcing its competitive edge. American Express has targeted affluent customers and is witnessing positive outcomes as a result of its strategic investments. During the fourth-quarter earnings call, CEO Stephen Squeri emphasized that the company’s dedication to investment correlates directly with its success, revealing that all key focus areas have shown tangible, positive results.
In 2025 alone, American Express allocated $6.3 billion to marketing efforts, a 75% increase from 2019. This substantial investment is driving increased customer demand and engagement, improving credit quality, and enhancing retention and relationship expansion. The company’s investment strategy is split into two main areas: maintaining existing operations and fostering innovation. A significant technological advancement is the introduction of a new cloud-based data analytics model, which aims to provide deeper personalization in marketing efforts.
Financially, American Express has shown impressive growth in the fourth quarter of 2025, with revenues increasing by 10% year-over-year and a 16% rise in earnings per share (EPS). Additionally, card fees surged by 17% compared to the previous year, with no decline in renewal rates despite the introduction of increased annual fees on cards.
The company’s business model is particularly resonating with younger consumers, especially Generation Z, whose spending grew by 36% year-over-year. Though this demographic previously accounted for only 6% of total spending, its rapid growth highlights a promising trajectory as these consumers mature.
Moreover, American Express has outperformed the S&P 500 over the past five years, with stock prices appreciating 201% compared to a 91% increase in the broader index. This enduring success is attributed to the company’s ongoing investments and its ability to capture market share among younger clientele, reinforcing its reputation as a timeless entity in the financial landscape.
