Better Warren Buffett Stock: Visa vs. American Express
Warren Buffett watchers know that American Express (NYSE: AXP) is one the investing legend's favorite stocks. It's been a part of the Berkshire Hathaway portfolio for 30 years, and today it's the second-largest position behind Apple, accounting for 15.2% of the total. Berkshire Hathaway owns 21.5% of American Express' outstanding shares, signifying his confidence in the company.
Buffett loves financial stocks. He's a big believer in companies that play a large role in the economy, and financial infrastructure certainly falls into that category. Specifically, he loves bank stocks, because they're cash-rich and they provide the means for the economy to work smoothly. They also typically pay dividends, which demonstrates stability and a commitment to shareholders.
Visa (NYSE: V) is the largest credit card network in the world, but it accounts for only 0.9% of the Berkshire Hathaway portfolio. However, Berkshire Hathaway owns 8.6% of Visa stock, a hefty portion.
Source Fool.com
