AXP is a low-risk stock with a strong business model for high-income clients; expected to exceed $575 in value over the next few years.
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Okay, guys. The next stock is the fourth of the seven stocks, American Express. Okay, American Express. It's like an offer is being made for a student who gets an A+, right ? It's like everyone's favorite child.
American Express. This is one of the best stocks on the market , one of the least risky stocks on the stock market , right?
This stock will be worth more than $575 in the long run and will also have dividends , right? Remember, I like companies whose main business target is customers with high credit scores, okay ? And high income. I like that business model.
American Express. Only people with high credit scores and high incomes use American Express. And so, that's the client base, I personally use American Express. The gold card is the one I think I use all the time , okay?
My wife has a gold card , and she also has a platinum card, so we get all those fancy perks , right? When you're at the airport , it feels amazing. And I use my American Express card for almost everything.
Sometimes I use the Chase card if there is a special business expense , but after getting American Express you do n't mind paying every year, right ? And they make money from it.
Sure, they could give you a lot of money back, and honestly, I do n't know, it's a great business model.
And do n't just take my word for it. Warren Buffett, the best of all time, right? That's Warren Buffett, right? What is his second largest investment in Berkshire Hathaway? He has the second highest investment in American Express.
Do you know how difficult this is? You know how hard it is to get a spot in Warren Buffett's portfolio, let alone the second largest position there? This is incredible, isn't it ?
So, American Express, Warren Buffett has a $46 billion position there. I mean, this... yeah, this is a big deal. Why Warren Buffett would keep it as his second-largest stock says a lot about this company's business model.
so do n't be surprised if American Express becomes the biggest position there, okay? Look at this American Express earnings chart. Do you like what you see? Margins declined slightly a few years ago, but for American Express, they have remained fairly stable since then.
This is American Express' operating income, which is on the rise. American Express's shareholder equity is constantly increasing, while the number of shares in the company is constantly decreasing.
So, when I look at American Express, I say, "This is a stock that I can get for $300, right ? I believe it's going to be over $575 in the next few years. And I do n't lose sleep over a stock like American Express, okay?
There are some business models that you do n't lose sleep over. American Express is one of them. You know what I preach , GVD, growth, value, dividends, right ? I love all these stocks, I see them in my portfolio all the time .
I have many types of portfolios, right? My public account, Patreon portfolio, and many other private portfolios. There are. I always see these stocks giving me dividends. This stock gave me $500.
This stock gave me $2,000. This stock gave me $3,000. This stock gave me $4,000 , right ? And the dividends keep piling up. I take that money and reinvest it in incredible opportunities in the market.
And American Express is one of those companies, right
What this channel has said about $AXP
Financial Education has 8 calls on this stock; only the adjacent ones are shown.