This Company Just Became Warren Buffett's Second-Biggest Stock Holding. Is It a Buy Today?

Group 1 - Warren Buffett has significantly adjusted his portfolio, selling a portion of Apple and Bank of America, while American Express has become his second-largest holding [2][3] - Apple now constitutes just under 29% of Berkshire Hathaway's portfolio, down from nearly half, indicating a strategic reallocation rather than a loss of faith in the tech giant [2] - American Express is praised for its strong brand, competitive advantages, and management's ability to adapt to changing consumer demographics, particularly targeting younger consumers [4][5] Group 2 - American Express is expected to achieve revenue growth of about 10% this year, with strong earnings per share growth anticipated for the long term [5] - The company operates on a closed-loop model, underwriting its own loans, which differentiates it from competitors like Visa and Mastercard [6] - American Express typically trades at a price-to-earnings ratio of 19, compared to the S&P 500 average of 27, indicating it is often undervalued [8] Group 3 - The company has demonstrated a commitment to shareholder value through dividend increases and share buybacks, aligning with Buffett's investment philosophy [8] - American Express is characterized as a value stock, making it suitable for value investors seeking stable growth and reliable dividends [9]