Over multiple decades, legendary investor Warren Buffett has helped produce incredible returns for conglomerate Berkshire Hathaway Inc BRK BRK, often times outperforming the S&P 500.With news that Buffett is stepping down as Berkshire CEO at the end of the year, here's a look at the top 10 stock holdings of the Berkshire Hathaway portfolio.Buffett Builds Berkshire Hathaway: Buffett has shaped Berkshire Hathaway from the early days of a textile maker into a conglomerate that owns companies like Duracell, Dai ...

Group 1 - The core point of the article is that as of March 31, Berkshire Hathaway's total fair value of equity investments is concentrated 69% in five companies: American Express, Apple, Bank of America, Chevron, and Coca-Cola [1]

Core Viewpoint - Warren Buffett's investment decisions are closely monitored due to Berkshire Hathaway's strong performance, with shares up nearly 18% year-to-date in 2025, which heightens investor interest in the company's portfolio moves [1]. Group 1: Berkshire Hathaway's Equity Holdings - Berkshire's 13F filing for Q1 2025 is expected by mid-May, with the latest filing from February 14 reflecting Q4 2024 data, providing insights into Buffett's major investments [2]. - The top five equity holdings of Berkshire reflect Buffett's disciplined, long-term investment strategy [2]. Group 2: Top Equity Holdings - **Apple**: Remains the largest holding with 300 million shares, accounting for nearly 28% of the equity portfolio, despite facing demand challenges and valuation concerns in 2025 [3][4]. - **American Express**: A long-term investment with around 152 million shares, representing nearly 17% of the portfolio, though down 10% year-to-date [7][8]. - **Bank of America**: Holds close to 680 million shares, about 11% of the portfolio, with strong fundamentals and a solid dividend yield [11][12]. - **Coca-Cola**: A 35-year holding with nearly 400 million shares, comprising about 9% of the portfolio, known for its defensive appeal and reliable dividends [13][14]. - **Chevron**: A newer addition with 114 million shares, representing roughly 6% of the portfolio, appealing for its strong balance sheet and dividend returns [17][18].

Group 1: Legislative Context - Bipartisan support is growing for legislation to ban U.S. senators and representatives from trading stocks while in office, with President Trump indicating he would sign such legislation if presented [1] Group 2: Amazon - Rep. Dwight Evans and Rep. Marjorie Taylor Greene have recently purchased shares of Amazon, indicating bipartisan confidence in the stock [2] - Amazon continues to excel in e-commerce and cloud services, with generative AI providing significant support for Amazon Web Services; the stock's price-to-earnings ratio is near its lowest since the Great Recession [4] Group 3: American Express - Rep. Rick Larsen bought shares of American Express, which is one of Warren Buffett's longest-held positions and valued at over $40 billion in Berkshire Hathaway's portfolio [5] - Despite a 10% decline in shares year-to-date, American Express is expected to deliver strong revenue and earnings growth this year [6] Group 4: Apple - Several Republican members of Congress have purchased Apple shares following a significant price drop of approximately 18% from its previous high [8] - While short-term investors may want to avoid Apple due to potential impacts from tariffs, the company is viewed as a strong long-term investment due to its iPhone-centric ecosystem [9] Group 5: Berkshire Hathaway - Only Rep. Greene has recently bought shares of Berkshire Hathaway, which has performed well in 2025 despite broader market challenges [10] - Berkshire Hathaway has a substantial cash reserve of over $334 billion, which could be utilized for future investments [11] - The lack of stock buybacks in the fourth quarter of 2024 may suggest that the stock is trading at a premium, yet it remains a strong investment option due to its management and diversification [12][13]

American Express Shareholder Meeting 2025 APRIL 29, 2025 2) Attributable to common shareholders. Represents net income less earnings allocated to participating share awards and dividends on preferred shares. FY'24 EPS reflects the sale of Accertify, which resulted in a gain of $0.66 per share. 2 Our Strategic Imperatives 1 Expand our leadership in the premium consumer space 3 Strengthen our global, integrated network 2 Build on our strong position in commercial payments 4 Build on our unique global position ...

Financial Data and Key Metrics Changes - The company reported record revenues of $66 billion for FY 2024, an increase of 10% on an FX adjusted basis [31] - Annual net income exceeded $10 billion, translating to $14.01 per share, which is a 25% year-over-year increase [31] - Q1 2025 revenues reached $17 billion, up 8% year-over-year on an FX adjusted basis, with net income of $2.6 billion and earnings per share of $3.64 [32] Business Line Data and Key Metrics Changes - Total billed business amounted to $1.6 trillion, driven by strong card member spending [31] - The company acquired 13 million new proprietary card members in 2024, reflecting strong demand for premium fee-based products [31] Market Data and Key Metrics Changes - The company continues to see consistent spending trends among its premium customer base, despite economic uncertainties [36] Company Strategy and Development Direction - The company focuses on four strategic imperatives: expanding leadership in the premium consumer space, strengthening its position in commercial payments, enhancing its global integrated network, and building its unique global position [31] - The company aims to drive sustained growth by delivering on its brand promise and innovating for customers [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to build on its strong foundation and drive sustained growth [33] - The company acknowledges the ongoing economic forces but believes it is too early to predict their impact on customer spending [36] Other Important Information - The company celebrated its 175th year in business, highlighting its journey of innovation and transformation [32] Q&A Session Summary Question: How does the Compensation Committee use the compensation actually paid total compensation figures in its calculation of the CEO target total compensation award for the upcoming year? - The company refers shareholders to its pay versus performance disclosures and the Board's process for determining annual compensation [28] Question: Would Amex consider adopting a guarantee of nondiscriminatory advertising policies? - The company stated it does not employ discriminatory practices and complies with all required laws [28] Question: Does the company see AXP credit card customers pulling back on big ticket purchases? - Management noted consistent spending trends among premium customers and stated it is too early to predict future impacts [36] Question: Will deglobalization and anti-American sentiment affect the company's strategy? - Management confirmed that these factors do not change the company's strategy, emphasizing its strong value proposition and global partnerships [38]

Group 1 - The U.S. consumer landscape in early 2025 is characterized by a divide between lower-income earners who are cutting back on spending and wealthier individuals who continue to spend on luxury items and experiences [1][2][3] - Lower-income consumers are focusing on essential purchases, leading to a decline in discretionary spending, while affluent consumers are increasing their spending on dining and travel [2][4] - Synchrony reported a 4% decline in spending among its lower-income card users, contrasting with a 6% increase in spending at American Express and similar growth at JPMorgan Chase, indicating a disparity in consumer behavior based on income levels [4][5] Group 2 - Synchrony CEO Brian Doubles noted that while the overall consumer remains in good shape, spending is becoming more selective, particularly among lower-income users who have been reducing discretionary spending for about a year due to inflation [5]

Core Viewpoint - American Express is highlighted as a strong dividend stock, offering sustainable income through dividend growth, especially during market volatility [1][2]. Group 1: Company Overview - American Express was founded in 1850 and has evolved significantly since launching its credit card line in 1958, becoming one of the largest credit card issuers in the U.S. and globally [3]. - As of the end of Q1, American Express had approximately 147.5 million credit cards in circulation, adding 3.4 million net new cards in the quarter, indicating potential future earnings growth [4]. Group 2: Customer Demographics - Millennials and Gen Z are increasingly drawn to American Express credit cards, accounting for 35% of spending last quarter, with a year-over-year growth of 14%, representing the future customer base for the company [5]. Group 3: Financial Metrics - American Express maintains strong credit metrics, with a net write-off rate of 2.1%, significantly lower than the 5% rate of competitor Discover Financial, suggesting resilience during economic downturns [6]. - Over half of American Express' revenue comes from swipe fees, with an additional 14% from annual fees, contributing to more stable earnings compared to traditional banks [7]. Group 4: Dividend Growth - The company has experienced a 152% growth in earnings per share (EPS) over the last decade, alongside a cumulative 120% increase in dividend per share, with a recent 17% hike in the quarterly dividend [9]. - The current dividend yield stands at 1.09%, with expectations for growth based on the cost basis for new investors [9]. Group 5: Share Buyback Program - American Express has reduced its shares outstanding by 30% over the last 10 years through a share buyback program, enhancing the ownership stake of existing shareholders [10]. - This reduction in shares outstanding facilitates easier growth in dividend payouts, making American Express an attractive option for long-term investors [11].

Core Viewpoint - Berkshire Hathaway holds a significant stake in American Express, valued at $37 billion, indicating potential for continued success in the financial sector [1] Group 1: Competitive Strengths - American Express possesses durable competitive advantages, characterized by a strong brand and economic moats, making it a high-quality business [3] - The company has a powerful brand presence in the financial services industry, targeting wealthier clients with premium credit cards that offer high rewards and perks [4] - American Express benefits from a network effect, where increased merchant acceptance enhances the value of its cards for consumers, creating a positive feedback loop [5][6] Group 2: Financial Performance - In 2024, American Express reported a 9% increase in revenue, reaching $65.9 billion, and a 19% rise in adjusted earnings per share (EPS) [7] - The company anticipates revenue growth of 8% to 10% and adjusted EPS growth of 12% to 16% in 2025, with long-term sales growth projected at a minimum of 10% per year [7] - Favorable trends, such as the shift towards cashless transactions and rising GDP, are expected to drive payment volume through American Express's network [8] Group 3: Customer Base and Demographics - The customer base is shifting, with millennials and Gen-Z accounting for over 60% of new consumer accounts in Q1, indicating a growing spending trend among these demographics [9] Group 4: Valuation and Capital Return - American Express shares are currently trading 26% below their all-time high, presenting a compelling valuation opportunity with a price-to-earnings (P/E) ratio around 17, one of the lowest in the past year [10] - The company has a strong capital allocation policy, returning $2 billion in dividends and repurchasing $5.9 billion in stock in 2024, enhancing returns for investors [11]

Core Viewpoint - American Express (AXP) may not appear to be a recession-resistant business, but it possesses characteristics that could enable it to endure economic downturns better than its competitors [1] Company Analysis - American Express has an affluent clientele, which provides a buffer against economic challenges [1] - The company maintains excellent asset quality, contributing to its resilience in adverse economic conditions [1]