# Why This Buffett Stock Might Be His Most Underrated Bet

While everyone watches Apple and Alphabet in Berkshire's portfolio, there's a quieter powerhouse that deserves attention: **American Express**.

It's Buffett's second-largest position at $50B (nearly 20% of equity holdings), and unlike Apple which he's been trimming, Berkshire hasn't touched its 151.6M AXP shares in decades. That's conviction.

Here's why: AXP sits on both sides of the transaction — issuing cards, running its network, and dealing directly with merchants. This unique model captures spending data competitors can't access, letting them target high-value customers surgically.

The numbers speak loud:
- 2024: Revenue +9% YoY ($65.9B), EPS +25% ($14.01)
- Q3 2024: Revenue growth accelerated to 11%, EPS +19% YoY
- Returned $7.9B to shareholders that year alone

Valuation check: Trading at 24x PE — notably cheaper than Apple (36x) and Alphabet (30x), yet posting double-digit growth with fortress-like credit quality.

Risk? Recession could crimp spending. But 10 years out? This might be Buffett's most boring, reliable winner.