Warren Buffett’s Berkshire Hathaway is facing a decision point with two of its significant financial holdings, American Express (AXP) and Visa (V). Both stocks have underperformed in 2026, making them potential buying opportunities for investors. American Express, with a robust 511% total return over the past decade, benefits from its premium brand positioning and a growing base of millennial and Gen Z customers. This demographic shift, coupled with strategic fee increases, positions the company for sustained growth.
In contrast, Visa has delivered a solid 325% return over the same period, but its business model, which relies on transaction processing rather than lending, presents a different risk profile. Visa’s impressive net profit margin of 47.6% and vast network of 5 billion cards and 175 million merchant locations create a formidable competitive advantage, although its valuation is higher than American Express’s.
Overall, while both stocks present attractive investment opportunities, American Express’s lower price-to-earnings ratio and higher projected earnings growth suggest it may offer better returns in the long run.
Source: fool.com