Group 1: American Express - American Express is a long-term performer and a significant holding for Warren Buffett since 1991, benefiting from a vertically integrated payments network and travel perks [3][4] - The company added 3 million new credit cards in the last quarter, which is expected to drive spending and profits [4] - Management projects annual revenue growth of 10% and earnings per share (EPS) growth at mid-teens levels, with a current price-to-earnings (P/E) ratio of 23 [5] Group 2: Occidental Petroleum - Occidental Petroleum is one of the largest oil and natural gas producers in the U.S., producing a record 1.4 million barrels of oil equivalent per day last quarter [7] - The company generated 4.5 billion over the past 12 months, with a market cap of 100 billion in deposits, benefiting from high interest rates on deposits compared to traditional banks [9][10] - The company is facing challenges due to rising loss rates in the automotive sector and the impact of rising interest rates, but is expected to stabilize as the Federal Reserve lowers rates [11] - Ally Financial has a P/E of around 15, and as earnings recover, the P/E is expected to decrease, leading to potential stock price increases and higher dividend payouts [12]
The Best Warren Buffett Stocks to Buy With $10,000 in 2025