One of Warren Buffett's Favorite Stocks Is Up 50% This Year. Can It Keep Climbing?
The payment processor and credit card issuer American Express (NYSE: AXP) has long been one of Warren Buffett's favorite stocks. Just last year, Buffett called the brand special, and American Express is currently one of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) top holdings in its equities portfolio. The stock has spent much of 2021 hitting new highs and is currently trading up more than 50% this year. Can it keep going? Let's take a look.
With a lot of business in the travel and entertainment (T&E) and retail sectors, American Express was certainly affected by the pandemic, which hit many of those sectors hard. But for the first time since the pandemic hit, spending on American Express cards is up from the third quarter of 2019. This drove discount revenue (transaction fees American Express earns from merchants that accept its cards and one of the largest drivers of revenue at the company) to nearly $6.7 billion, up slightly from 2019.
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Source Fool.com
