Why Buffett's Quietest Mega-Position Might Be His Most Brilliant Move

While everyone obsesses over Berkshire’s Apple and Alphabet holdings, here’s what catches my eye: American Express.

Buffett owns 151.6M shares (~$50B) — that’s his second-largest equity bet, and he’s held it rock-solid for decades without trimming. Meanwhile, Apple keeps getting sold. That tells you something.

The Numbers Speak

2024 full year:

• Revenue up 9% to $65.9B
• EPS jumped 25% to $14.01
• Returned $7.9B to shareholders (buybacks + dividends)

Q3 2024:

• Revenue growth accelerated to 11%
• EPS surged 19% YoY
• Platinum card refreshes hit 2x new account targets

Here’s the Kicker

American Express trades at a P/E of 24 — while Apple sits at 36 and Alphabet at 30. Yet AXP is delivering double-digit growth + fortress credit performance + actual cash flowing back to you.

That’s not just a business; that’s pricing power. People willingly pay $895/year for that Platinum card because the perks actually hit.

The Real Play

Buffett’s not buying the sexiest names. He’s buying the company with moat-level competitive edges that prints cash decades from now. AXP’s position on both sides of every transaction = unmatched customer data + pricing leverage. That’s why he won’t let it go.

Recession risk exists. Competition is real. But 10 years out? This might be one of his best calls.