1 Top Warren Buffett Stock Trading 21% Below Its All-Time High That Can Double a $1,000 Investment in 5 Years

Source Motley_fool

Key Points

  • American Express trades at a price-to-earnings ratio of 18.6, a multiple that could expand in the future.

  • Management expects mid-teens earnings growth in the long run, noting the main catalyst that can drive shareholder returns.

  • 10 stocks we like better than American Express ›

Berkshire Hathaway owns dozens of stocks in its enormous $356 billion portfolio. But there is a notable concentration among a few names.

American Express (NYSE: AXP) is the conglomerate's second-biggest holding. Berkshire Hathaway owns 22.5% of its outstanding shares, currently valued at $46.3 billion.

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This top Warren Buffett stock trades 21% below its all-time high from December 2025 (as of Sept. 25). But it can double a $1,000 investment in five years. Here's how.

American Express logo on white and blue background.

Image source: The Motley Fool.

Valuation upside is the one driver of shareholder returns. This financial stock can be bought at a price-to-earnings (P/E) ratio of 18.6. This is 23% cheaper than at the start of 2026. In five years, it's not unreasonable to assume that the P/E multiple will expand to 20. This adds some upside to the outlook.

Of course, American Express needs to execute well, which it hasn't had an issue doing. This means that investors must also pay attention to profit gains, which are the other catalyst for shareholder returns. In January, management revealed a forecast that called for "mid-teens" earnings-per-share growth over the long term.

The combination of valuation expansion and strong profit growth at American Express could double the stock price over five years. There's a good chance that investors will see a starting sum of $1,000 grow to $2,000 between now and late 2031.

Should you buy stock in American Express right now?

Before you buy stock in American Express, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*

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*Stock Advisor returns as of September 27, 2026.

American Express is an advertising partner of Motley Fool Money. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express and Berkshire Hathaway. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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