Warren Buffett entered the buy zone in the middle of the banking boom
Warren Buffett stock American Express (AXP) is flashing a flash signal after its release, earnings next week. American Express stock entered into buy territory on Thursday.
The credit card company said on Thursday it will pay about $230 million to settle a Justice Department criminal wire fraud investigation.
Amex cards have become a Gen Z status symbol
One Berkshire Hathaway (BRKB) The boss’s antique holdings found a new audience. American Express says its growing appeal with younger cardholders has boosted new card purchases.
Amex cards have become a status symbol among Gen Z Americans, offering a range of experiences and privileges. Younger card members show stronger engagement and make more purchases than older customers, the company says.
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According to reports, Buffett began buying Amex shares in 2015. “The salad oil scandal.“Berkshire now owns 151.6 million Amex shares, or 21.5% of the total.
The settlement announced Thursday includes $108.7 million to settle claims that the company deceptively marketed the cards to small businesses. Another $138 million to settle allegations of fraudulent transactions and a federal wire fraud investigation.
The collection showed little effect from the questions and the investigation. A big rally for Amex shares in late September 2024 put the credit card company in second place. Apple (APL) and before Bank of America (BAC) has shares worth $41.12 billion in Berkshire’s equity portfolio by market capitalization, whalewisdom.com reports.
American Express reports fourth quarter earnings next Friday, January 24th. Jumped to IBD. Relative strength in the new high stock list Before earnings after Wednesday’s release.
Warren Buffett’s stock is in the buy range
American Express shares were shaken by Thursday’s stock market action, hitting a 52-week intraday high before closing 0.3% lower. In the previous session, shares cleared 307.82 buy points from a flat base. MarketSurge charts.
The relative strength line has reached new highs when stocks explode, a good sign. This is indicated by the blue dot on the daily and weekly charts. The RS line, the blue line on the chart shown, tracks a stock’s performance against the S&P 500 index.
Strong bank earnings lifted financial stocks, including Bank of America, near buy points this week.
Berkshire Hathaway’s stock portfolio has heavy bets on financials. In addition to American Express and Bank of America, Buffett owns. MasterCard (MA), Visa (V), Citigroup (C), Ali Financial (Ali) and Chubb (CB), among others.
American Express shares Buffett’s investment lessons
In the first three quarters of 2024, despite selling Apple, Bank of America and several other stocks, Berkshire Hathaway held American Express. Buffett hasn’t changed anything with his old holdings – coca cola (IS).
Buffett signaled that trimming either of the two long-term positions is unlikely anytime soon. The companies themselves are among the most established. American Express was launched in 1850 and Coca-Cola in 1886.
In Berkshire’s 2023 annual report, the investment legend acknowledged past mismanagement at both iconic companies. But in the year We haven’t bought or sold shares of Amex or Coke in 2023 – extending our own Rip Van Winkle slumber for more than two decades. Both companies have again rewarded the performance that we did not do last year by increasing their earnings. And our share of Amex Revenues In the year It will exceed $1.3 billion by 2023. Cost We bought it a long time ago.” (Italics are Buffett’s.)
Buffett added, “The lesson from Coke and Amex? When you find a really great deal, stick with it. Patience pays off, and one great deal can make up for a lot of mediocre decisions.”
of IBD Stock Check Tool American Express shares have averaged 21.8 percent revenue growth over the past three quarters, a three-year gain of 10 percent. It’s up 72 percent from last year.
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