The Enduring Partnership: How Many Shares of American Express Does Berkshire Hathaway Own?
Have you ever wondered about the powerful, long-standing investments that form the bedrock of Warren Buffett's empire, Berkshire Hathaway? You're not alone! It's one of the most fascinating topics in the world of finance. And when it comes to stable, long-term holdings, few are as iconic as Berkshire's stake in American Express (AXP). This isn't just a simple investment; it's a partnership forged over decades, rooted in Buffett's deep appreciation for the company's brand, business model, and management.
Let's dive in and uncover the details of this legendary holding, breaking it down into a clear, step-by-step guide.
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| How Many Shares Of American Express Does Berkshire Hathaway Own |
Step 1: The Current Snapshot: Unveiling the Numbers
So, let's get straight to the point. The first thing you need to know is the most recent data on this significant holding. As of the end of the first quarter of 2025 (March 31, 2025), Berkshire Hathaway owned a staggering 151,610,700 shares of American Express.
But what does that number really mean? It's not just a large figure; it represents a significant portion of the entire company. This ownership stake accounts for approximately 21.6% of American Express's outstanding common stock.
This makes American Express one of Berkshire Hathaway's top holdings by value, consistently ranking among its core positions alongside giants like Apple and Coca-Cola. As of March 31, 2025, the value of this stake was an astounding $40.79 billion, making up a substantial 15.77% of Berkshire's total stock portfolio.
Step 2: A Walk Through History: The Origin of the Partnership
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To truly appreciate the magnitude of this holding, we need to understand its history. This wasn't a one-time purchase. It was a calculated, patient accumulation that began decades ago.
Sub-heading 2.1: The Salad Days: Investing in a Time of Crisis
The relationship between Berkshire Hathaway and American Express dates back to the early 1990s. Warren Buffett began building his initial position in American Express in 1991, a period when the company was facing a major crisis known as the "salad oil scandal." This scandal had rocked the financial world and American Express's stock was trading at a discount. Buffett, with his characteristic contrarian view, saw a strong brand and a powerful business model that he believed would endure.
He saw the crisis not as a reason to avoid the stock, but as a perfect opportunity to buy a great business at a great price.
Sub-heading 2.2: A Long-Term Accumulation
Berkshire Hathaway continued its purchases of American Express shares through 1995, building a substantial initial position. What's truly remarkable is that since that initial buying spree, Berkshire has not needed to purchase additional shares to grow its ownership percentage.
So how did their ownership stake grow from nearly 10% to over 21% without buying more shares? The secret lies in share repurchases.
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American Express has been a consistent buyer of its own shares. When a company buys back its own stock, it reduces the total number of outstanding shares. If you own a fixed number of shares, and the total pie of shares shrinks, your percentage ownership of the company automatically increases. This is a powerful demonstration of Buffett's philosophy of "owning a great business" and letting it work for you. He didn't have to spend a single extra dollar, and his ownership stake doubled!
Step 3: The "Buffett Moat": Why American Express?
So, why has this investment been so sticky for so long? What makes American Express so special in the eyes of the Oracle of Omaha? It all comes down to the concept of an economic moat.
Sub-heading 3.1: The Power of the Brand
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American Express has a brand that is synonymous with prestige, trust, and premium service. This isn't just marketing; it's a reputation that has been built over more than a century. It allows the company to charge higher fees for its services and attract a highly affluent and creditworthy customer base. This creates a powerful advantage over competitors.
Sub-heading 3.2: The "Closed-Loop" Network
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Unlike Visa or Mastercard, which operate as open networks connecting various banks and merchants, American Express operates a closed-loop system. This means it is the issuer of the card, the processor of the transaction, and the acquirer of the merchant relationship. This unique model gives Amex greater control over the entire transaction process and allows it to capture a larger portion of the revenue. This creates a powerful network effect: as more people use Amex cards and more merchants accept them, the network becomes even more valuable to everyone involved.
Sub-heading 3.3: A Shareholder-Friendly Management
Buffett values companies with management teams that are focused on creating shareholder value. American Express has a strong track record of returning capital to shareholders through both dividends and share repurchases. As we saw in Step 2, this has directly benefited Berkshire Hathaway by increasing its ownership percentage without any additional investment.
Step 4: A Look at the Returns: How Has It Paid Off?
The returns from this investment have been phenomenal. Berkshire's initial investment of around $1.3 billion in the 1990s has grown into a stake worth over $40 billion today. This is a gain of over 3,000%, a testament to the power of long-term, patient investing in a high-quality business.
Moreover, American Express is a consistent dividend payer. This stream of income provides Berkshire with a steady cash flow, which can then be reinvested in other opportunities.
In short, the American Express holding is a shining example of Buffett's core investing principles: buying a wonderful business at a fair price and holding it for the long term.
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Frequently Asked Questions (FAQs)
How to find out the latest Berkshire Hathaway holdings? You can find the latest Berkshire Hathaway holdings by looking at their quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings are required for institutional investment managers with over $100 million in assets and are released 45 days after the end of each quarter.
How to buy American Express shares? You can buy American Express shares through a brokerage account. You would need to open an account with a licensed broker (either online or a traditional firm), fund the account, and then place an order to purchase the shares using the ticker symbol AXP (NYSE: AXP).
How to invest like Warren Buffett? Investing like Warren Buffett involves several key principles: buying high-quality businesses with a strong economic moat, focusing on the long-term, and being disciplined and patient. He looks for companies with a durable competitive advantage, predictable earnings, and a shareholder-friendly management team.
How to calculate the ownership percentage of a company? To calculate the ownership percentage, you divide the number of shares you own by the total number of outstanding shares for that company and multiply by 100. For example, if you own 10,000 shares of a company with 1 million shares outstanding, your ownership percentage is (10,000 / 1,000,000) * 100 = 1%.
How to understand an economic moat? An economic moat is a durable competitive advantage that protects a company's long-term profitability and market share from competing firms. This can be a strong brand, a network effect, a cost advantage, or patents/intellectual property.
How to track Warren Buffett's portfolio? You can track Warren Buffett's portfolio by following the 13F filings of Berkshire Hathaway. Additionally, many financial news websites and investment platforms publish updates and analyses of the portfolio after each filing.
How to find out the dividend history of a stock? You can find the dividend history of a stock on financial websites like Yahoo Finance, Google Finance, or Nasdaq's website. They provide detailed tables of past dividend payments, including the amount, declaration date, ex-dividend date, and payment date.
How to understand the share repurchase program of a company? A share repurchase program, or buyback, is when a company buys back its own stock from the open market. This reduces the number of outstanding shares, which can increase the earnings per share (EPS) and the ownership percentage for existing shareholders.
How to determine the value of a stock? Determining the value of a stock involves using a variety of valuation metrics and models, such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, dividend yield, and discounted cash flow (DCF) analysis. These help you determine if a stock is undervalued, overvalued, or fairly priced.
How to know if a company has a strong brand? A strong brand is often reflected in customer loyalty, pricing power, and high brand recognition. You can assess brand strength by looking at customer satisfaction ratings, brand rankings, and the company's ability to maintain a premium price for its products or services.
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