A top Warren Buffett holding, American Express has crushed the S&P 500 in the past five years.
The company’s headline metrics have grown substantially, driving the stock higher.
American Express (NYSE: AXP) is a top Warren Buffett holding, with Berkshire Hathaway owning 21.8% of the company's outstanding shares. This should prompt the average investor out there to consider taking a look at the credit card giant. This is certainly a high-quality business that has rewarded shareholders over time.
If you'd invested $10,000 in this top financial stock five years ago, here's how much you'd have today.
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In the past five years, American Express shares have produced a total return of 260% (as of Oct. 20). So, a $10,000 starting investment would be worth $36,000 today. This is a wonderful gain that comes up significantly ahead of the S&P 500, which would've slightly more than doubled investor capital.
American Express has performed extremely well from a fundamental perspective since the fall of 2020. Revenue (net of interest expense) is up 111% in the past five years (from Q3 2020 to Q3 2025), driven by higher spending volume and a 36% increase in active cards across the globe. This remains a premium credit card brand.
Those gains have lifted diluted earnings per share, which have climbed at a compound annual rate of 218% during the same time.
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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 Berkshire Hathaway. The Motley Fool has a disclosure policy.