A Bull Market Is Coming: 1 Top Warren Buffett Growth Stock to Load Up On Now

We can say with near certainty that, at some point, the S 500 will pick up steam and soar beyond its previous record high, set on Jan. 3, 2022. While the U.S. economy is currently in a tightening cycle as the Federal Reserve holds interest rates at the highest levels they've been at in more than two decades, investors appear to have their eyes on the horizon; the S 500 has risen more than 14% this year as the market is beginning to bake in a potential economic reacceleration.

At some point, the Fed will no longer raise rates. Even more, interest rates will eventually begin coming down. Once it becomes clear that inflation has been tamed and the Federal Reserve wraps up its hawkish tightening, the U.S. economy could boom, and stocks could soar. But investors don't want to wait for the good news to enter the market. Instead, they should consider owning stocks before we're in the clear. After all, since the market is forward-looking, investors will likely start pricing in an economic boom before it occurs. Investors who remain on the sidelines risk missing potentially momentous gains.

But what, exactly, is a good way to profit from a potential economic acceleration? One idea is one of Warren Buffett's largest and longest stock holdings: American Express (NYSE: AXP). Warren Buffett's holding company, Berkshire Hathaway's (NYSE: BRK.B)(NYSE: BRK.A) has a stake in the company valued at about $24 billion, or over 20% of the integrated payments company's shares outstanding. Here's why investors may want to follow Buffett's lead and invest in this wealth compounder.

Continue reading

Source Fool.com