American Express: Warren Buffett's Oldest Stock Pick
American Express (AXP) is one of Warren Buffett's oldest and most famous stock picks, first purchased in 1964 amid the Salad Oil Scandal. The stock remains in Berkshire Hathaway's portfolio as a top long-term holding.
According to a report from Insider Monkey, American Express (NYSE:AXP) is ranked among the 10 best long-term stocks to buy now according to Warren Buffett. Buffett first bought the shares in 1964 when the company's stock plunged during the Salad Oil Scandal.
The Investment Story
Buffett's relationship with American Express began in the 1960s when a fraud involving salad oil caused a sharp decline in the stock. Seeing an opportunity, he purchased a significant stake, making it a cornerstone of his portfolio.
Why It Remains a Favorite
American Express boasts a strong brand and a resilient business model in the financial services sector. Its focus on high-income customers makes it less vulnerable to economic fluctuations.
Stock Performance
The report did not provide specific recent performance figures, but it highlights that Buffett continues to hold the stock as a long-term investment.
What This Means for Investors
Buffett's choice of American Express underscores the importance of investing in companies with durable competitive advantages. Investors should evaluate the company's fundamentals before making any decisions.
Frequently Asked Questions
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