Here Is Another Stock Pick That Warren Buffett Nailed During the Pandemic
Legendary investor Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) took some flack earlier in the pandemic for dumping some stocks, particularly in the banking sector, that have since performed quite well -- Wells Fargo and Goldman Sachs come to mind.
But the Oracle of Omaha also made some calls that have panned out well, like pumping billions into Bank of America. And Buffett and Berkshire look to have, for the most part, calculated correctly, with Berkshire's stock at all-time highs. Another move that Buffett nailed during the pandemic and that I think gets overlooked is the decision to maintain Berkshire's large position in the credit card and payments company American Express (NYSE: AXP), which is now trading at all-time highs. Here's why.
While the decision looks like a no-brainer now, I view Buffett's decision to maintain Berkshire's stake in American Express as another reason why he is one of the greatest investors of all time. In the early months of the pandemic, no one knew what was going to happen with the economy. A recession came suddenly, and banks braced for massive amounts of loan losses as people limited physical interaction and the economy more or less came to a screeching halt for weeks and even months at a time.
Source Fool.com
