American Express Is Warren Buffett's Second-Biggest Stock. Is It Still a Buy Near Highs?

American Express, Berkshire Hathaway's second-largest stock holding, has more than doubled over five years and recently traded near record highs around $350. While the company shows strong fundamentals with 11% revenue growth, 18% EPS growth, and expanding younger cardmember bases, the stock now trades at a premium 20-22x P/E ratio compared to historical low-to-mid-teens multiples. The article suggests the easy rerating gains may be behind it, but the stock remains a reasonable buy for patient investors seeking quality compounding at fair—not cheap—valuations.