1 Must-Buy Stock for Instant Growth...

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 Introduction

Warren Buffett, CEO of Berkshire Hathaway, has built an unparalleled legacy by identifying exceptional businesses with enduring competitive advantages and delivering consistent, long-term returns. His disciplined investment philosophy has produced decades of market-beating performance, with Berkshire Hathaway achieving an annualized return of nearly 20% since 1965, far outpacing the broader market.

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American Express

Among Berkshire Hathaway’s meticulously chosen holdings, American Express stands out as the second-largest holding, accounting for 15.3% of its stock investments. American Express is a cornerstone of Buffett's strategy. Known for its durable competitive advantages, consistent earnings power, and shareholder-focused management, the financial services giant epitomizes the qualities Buffett seeks in his investments.

With its robust business model, strong brand loyalty, and ability to adapt to changing market dynamics, American Express has not only weathered economic cycles but emerged stronger. Even in 2024, when its stock price surged by a remarkable 62.7%, the company continues demonstrating why it remains a standout in Buffett’s portfolio. For investors inspired by Buffett’s value-driven approach, American Express offers an invaluable case study in resilience and sustained growth.

Sustained Revenue Momentum

American Express reported a third-quarter 2024 revenue of $16.6 billion, reflecting a robust 8% year-over-year increase. This growth was driven by a 6% rise in card member spending, which reached $387.3 billion during the quarter, and an 18% surge in card fee revenue compared to the same period in 2023.

Chairman and CEO Stephen J. Squeri attributed the strong performance to high customer retention rates and success in attracting younger demographics. Millennials and Gen Z consumers now represent the fastest-growing customer base in the U.S. This growth aligns with the company’s strategic focus on innovation, exemplified by 40 global cards launched in 2024 alone.

Strong Earnings and Credit Quality

American Express continues to showcase its financial strength and operational excellence, delivering impressive earnings growth in the third quarter of 2024. Net income rose to $2.51 billion, a modest yet solid increase from $2.45 billion in the same period the previous year. This translated to an earnings per share (EPS) gain of 6% year-over-year, reaching $3.49 per share. The steady growth prompted management to raise the full-year 2024 guidance to a range of $13.75–$14.05 per share, a significant upward revision from the earlier estimate of $13.30–$13.80 per share. This confidence signals the company’s ability to maintain momentum in a competitive and uncertain economic environment.

In addition to robust earnings, American Express maintains its reputation for disciplined credit management. The net write-off rate improved to 1.9% in Q3 2024, a marked decline from 2.1% in Q2, reflecting the company's effective risk oversight and commitment to maintaining strong asset quality. This improvement underscores American Express's ability to navigate potential headwinds, including rising interest rates and fluctuating consumer spending, without compromising its financial stability.

Furthermore, American Express is on track to achieve approximately 9% revenue growth for the full year of 2024, highlighting its balanced approach to expansion and risk mitigation. The company’s ability to grow revenues while enhancing credit quality is a testament to its strategic agility and operational resilience.

With a well-rounded performance that includes rising profits, disciplined credit practices, and a forward-looking growth trajectory, American Express continues to distinguish itself as a top-tier financial services company. For investors, its ability to deliver on both earnings growth and credit quality strengthens its appeal as a stable and reliable long-term holding.

As you evaluate exceptional investment opportunities like American Express, it’s worth considering emerging sectors that demonstrate significant growth potential—such as the smart home market. A standout in this space is RYSE, a technology company at the forefront of innovation in the Smart Shade category.

$10 Million in Revenue, Explosive Growth—RYSE Is Redefining the Smart Home

The smart home market is evolving, and RYSE is leading the way with their groundbreaking SmartShades technology. With over $10 million in total revenue, 200% month-over-month growth, and partnerships with major retailers like Home Depot, Lowe’s, and Blinds.com, RYSE is scaling rapidly in a market projected to grow 23% annually.

What makes RYSE unique? Their 10 fully granted patents and cutting-edge automation solutions allow homeowners to transform ordinary window coverings into sleek, smart devices without replacing their blinds or shades.

At just $1.75 per share, this is your chance to invest in a company with proven traction and enormous potential for growth.

Why American Express Deserves Attention

American Express continues to demonstrate why it’s an exceptional choice for dividend growth investors. The company’s ability to sustain robust revenue growth, attract a younger and increasingly loyal consumer base, and deliver consistent earnings solidifies its position as a top-tier investment.

In 2024, American Express reported a total revenue growth of 8% year-over-year in Q3, reaching $16.6 billion. This was driven by 6% growth in card member spending, which climbed to $387.3 billion during the quarter, and an impressive 18% increase in card fee revenue. These figures underscore the company’s resilience and ability to capitalize on its strategic initiatives, even in a competitive financial landscape.

One of American Express’s key strengths is its success in attracting millennials and Gen Z consumers, the fastest-growing demographic cohorts in its customer base. This younger audience is driving incremental growth, with millennials and Gen Z now accounting for a significant portion of the company’s new card acquisitions. CEO Stephen J. Squeri attributes this success to American Express’s ability to refresh and innovate its product lineup, completing 40 global card updates in 2024 alone. This targeted strategy ensures the company remains relevant to emerging consumer trends while maintaining its brand loyalty among older demographics.

For dividend-focused investors, American Express’s payout profile is equally compelling. Over the past five years, the company has delivered an average annual dividend growth rate of approximately 8%, reflecting its commitment to returning value to shareholders. In 2024, the dividend yield remains competitive despite the stock’s 62.7% year-to-date surge, showcasing its ability to grow payouts while delivering capital appreciation.

Despite the sharp rise in its stock price, American Express remains well-positioned to generate future value through its resilient business model and emphasis on long-term growth. With strong credit quality, disciplined financial management, and a proven ability to adapt to shifting market dynamics, the company is not just a stable choice—it’s a growth engine for investors seeking a blend of reliability and upside potential.

For those seeking a combination of steady growth, rising dividends, and a market-leading position, American Express is a standout in today’s investment landscape.

Conclusion

American Express exemplifies what makes a great long-term investment: a resilient business model, strategic adaptability, and consistent value creation for shareholders. Its ability to sustain revenue growth, attract younger consumers, and maintain strong earnings performance sets it apart in the competitive financial services sector.

For dividend growth investors, American Express offers the ideal combination of stability and upside potential. With a track record of consistent dividend increases, disciplined credit management, and innovative product strategies, the company is well-positioned to navigate economic challenges while capitalizing on growth opportunities.

Even after a remarkable 62.7% stock price surge in 2024, American Express continues to deliver compelling value. Its focus on expanding its customer base, especially among millennials and Gen Z, coupled with robust financial performance, ensures a bright future for shareholders. For those seeking a blend of reliability, growth, and rising dividends, American Express remains a cornerstone of a well-rounded investment portfolio.

Happy Investing!!

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Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. The views expressed are those of the author and do not necessarily reflect the official policy or position of any company. Readers should do their research before taking any actions related to the content. The author and publisher are not liable for any losses or damages caused by following any advice or information presented herein. Unveiling the Secrets of Growth Stock Investing!