Why Warren Buffett's Biggest Hidden Gem Might Outshine Apple in the Next Decade

While everyone’s obsessed with Buffett’s Apple and Alphabet stakes, there’s a sleeper position flying under the radar: American Express.

Berkshire Hathaway’s stake? 151.6 million shares worth $50 billion — that’s 20% of its entire equity portfolio. And here’s the kicker: unlike Apple (which Buffett keeps trimming), Berkshire hasn’t touched its AXP position in decades. That’s conviction.

The numbers tell the story:

• 2024: Revenue up 9% YoY to $65.9B, EPS up 25% to $14.01
• Q3 2024: Revenue growth accelerated to 11%, EPS surged 19% YoY
• Returned $7.9B to shareholders last year through buybacks and dividends

What makes AXP different? It sits on both sides of the transaction—issuing cards, running its own network, working directly with merchants. That means they capture premium data and can target high-spenders surgically. The Platinum card refresh is proof: new account acquisitions doubled, and people happily pay $895 annual fees.

The valuation sweet spot: Trading at 24x earnings. Sure, that’s higher than traditional finance stocks, but way cheaper than Apple (36x) or Alphabet (30x)—especially when AXP is growing double-digit revenue consistently with fortress credit performance.

The risk? Recession could tank card spending and credit quality. But if you’re thinking 10-year horizon, this is the kind of boring, durable compounder Buffett actually loves. The market’s sleeping on it.