Warren Buffett, the legendary investor, has some strong words to say about American Express: "I could do all kinds of things with hundreds of billions of dollars. But I can't put in the minds of people what is in their minds about American Express."

The Oracle of Omaha's company owns more than 20% of American Express (NYSE: AXP), making it the third-largest holding in Berkshire Hathaway's investment portfolio. Processing more $1.5 trillion in payments volume in 2022, American Express has been an economic mainstay in the U.S. for years and is the third-largest digital-payments network behind and Mastercard. 

But at a market capitalization of $118 billion, is there any room left for American Express to grow? Buffett famously bought his stake in the 1990s and hasn't touched the shares since. Don't get fooled by this large market cap. American Express is setting itself up to grow for years to come through its new two-pronged strategy of increasing merchant distribution and bringing on younger customers. 

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Source Fool.com