Hey there! Ever wondered about the inner workings of Warren Buffett's investment empire, Berkshire Hathaway? It's a fascinating world of long-term vision and conviction, and few investments exemplify this better than their stake in American Express. It's a relationship that has spanned decades and showcases the power of a "buy and hold" philosophy.
So, let's dive deep into this iconic holding and uncover the specifics of how much of American Express Berkshire Hathaway owns. We'll explore the history, the numbers, and the rationale behind one of the most successful partnerships in the financial world.
Step 1: Understanding the "Why" Before the "How Much"
Before we get into the exact numbers, let's engage with the philosophy behind this investment. Do you think a legendary investor like Warren Buffett focuses on short-term price fluctuations, or is he looking at something much deeper?
He's famous for his belief in a company's "moat" – its sustainable competitive advantage. For American Express, this moat is their premium brand, their closed-loop network (they are both the card issuer and the payment processor), and their affluent customer base. This unique business model provides a level of control and profitability that separates them from other payment networks.
This long-term perspective is the key to understanding why Berkshire Hathaway has held onto American Express through thick and thin.
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| How Much Of American Express Does Berkshire Hathaway Own |
Step 2: Unpacking the Numbers: The Latest Ownership Stake
So, let's get to the heart of the matter. How much of American Express does Berkshire Hathaway really own?
QuickTip: Focus on one paragraph at a time.
As of recent public filings (March 31, 2025), Berkshire Hathaway owns a substantial and very significant portion of American Express.
Total Shares: Berkshire Hathaway holds 151,610,700 shares of American Express (AXP).
Percentage of Outstanding Stock: This massive holding translates to roughly 21.6% of the total outstanding shares of American Express.
Holding Value: The value of this stake fluctuates with the market, but as of recent data, it's valued at over $40 billion, making it one of Berkshire's largest and most valuable holdings, second only to Apple in some portfolio rankings.
It is important to note that this ownership percentage has grown over time, not necessarily by Berkshire buying more shares in recent years, but because American Express has been repurchasing its own shares. When a company buys back its own stock, the number of outstanding shares decreases, and the ownership percentage of existing shareholders like Berkshire Hathaway automatically increases. It's a classic example of Buffett's conviction in a business being rewarded through a company's shareholder-friendly actions.
Step 3: A Historical Journey: The Saga of a Legendary Investment
This isn't a new investment for Buffett. It's a story that goes back decades and is a masterclass in patient investing.
Sub-heading: The Salad Oil Scandal and the Beginning of a Beautiful Friendship
The story begins in the 1960s with the "Salad Oil Scandal." A fraud involving fake salad oil collateral led to a crisis for American Express's warehouse receipts business. The stock plummeted, and the company's reputation was in jeopardy.
Buffett saw an opportunity where others saw panic. He understood that the core business of American Express was strong and its brand was resilient. He began buying shares when the stock was trading at a fraction of its value, showcasing his famous mantra: "Be fearful when others are greedy, and greedy when others are fearful."
Tip: The middle often holds the main point.
Sub-heading: The Patient Holding and the Power of Compounding
Since that initial investment, Berkshire Hathaway has held on to American Express through numerous economic cycles, market crashes, and industry shifts. Buffett has famously stated that he has never sold a single share of American Express. This steadfast commitment is a testament to his belief in the company's enduring power and management.
This long-term holding period, combined with American Express's consistent performance and share buybacks, has led to incredible compounding returns. The initial investment has grown exponentially, creating billions of dollars in value for Berkshire Hathaway shareholders.
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Step 4: Decoding the Rationale: Why American Express?
Why is this particular company such a cornerstone of the Berkshire portfolio?
Sub-heading: The "Closed-Loop" Advantage
QuickTip: Skim the first line of each paragraph.
Unlike Visa or Mastercard, which are primarily payment networks, American Express operates a closed-loop system. This means they are involved in every step of the transaction: they issue the card to the consumer, process the payment, and handle the merchant relationship. This gives them unique control over their business and customer data, allowing them to offer a premium experience and earn revenue from both the cardholder and the merchant.
Sub-heading: A Strong, Resilient Brand
The American Express brand is synonymous with prestige, customer service, and security. This reputation allows them to attract and retain high-spending, affluent customers who are less sensitive to fees and more likely to use their card for premium purchases. This customer base is also more resilient during economic downturns, providing a more stable revenue stream.
Sub-heading: A Cash-Generating Machine
American Express is a highly profitable company that generates significant free cash flow. This cash can be used to reinvest in the business, pay dividends to shareholders, and, as we've seen, buy back shares. This financial strength is a key characteristic of the companies Buffett looks for.
10 Related FAQ Subheadings
Tip: Don’t skip the details — they matter.
How to Analyze Berkshire Hathaway's Portfolio? You can analyze Berkshire Hathaway's portfolio by reviewing their 13F filings, which are quarterly reports filed with the SEC that disclose their equity holdings. Websites like Fintel, GuruFocus, and Dataroma track and summarize these filings.
How to Find Out the Latest Berkshire Hathaway Holdings? To get the most up-to-date information, you should check the latest 13F filing from Berkshire Hathaway, which is typically filed within 45 days of the end of each quarter.
How to Understand Warren Buffett's Investment Philosophy? Warren Buffett's investment philosophy, often called "value investing," focuses on buying shares of high-quality companies with strong "moats" at a fair price, and holding them for the long term.
How to Calculate a Company's Ownership Percentage? To calculate an ownership percentage, you divide the number of shares held by a specific entity (e.g., Berkshire Hathaway) by the total number of outstanding shares for that company.
How to Buy American Express Stock? You can buy American Express (AXP) stock through a brokerage account. You would need to open an account with a brokerage firm, deposit funds, and then place an order to buy shares.
How to See the History of Berkshire Hathaway's Investments? Historical investment data for Berkshire Hathaway can be found on financial data websites, in their annual reports and shareholder letters, and by analyzing past 13F filings.
How to Know if a Stock is a Good Investment? A good investment depends on your individual financial goals and risk tolerance. However, common metrics to consider include a company's revenue and earnings growth, debt levels, competitive advantage, and valuation.
How to Invest Like Warren Buffett? To invest like Warren Buffett, you should focus on a long-term horizon, conduct thorough research on a company's fundamentals, and invest in businesses you understand and believe have a durable competitive advantage.
How to Find a Company's "Moat"? A company's moat can be identified by looking for things like a strong brand, network effects, high switching costs for customers, or a cost advantage over competitors.
How to Learn More About Berkshire Hathaway and Warren Buffett? You can learn more by reading Warren Buffett's annual shareholder letters, watching the Berkshire Hathaway annual shareholder meetings, and reading books and articles about his life and investment strategies.
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