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Yahoo
an hour ago
- Business
- Yahoo
Better Buffett Stock: American Express vs. Visa
American Express and Visa are both long-term Berkshire investments. Visa's lightweight business model allows it to expand more quickly than American Express. But American Express is better insulated from rising interest rates than Visa. 10 stocks we like better than American Express › Warren Buffett will step down as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) by the end of this year, and many investors are likely wondering whether his successor, Greg Abel, can maintain the growth rates of this conglomerate's closely watched stock portfolio. Abel, the CEO of Berkshire Hathaway Energy, has been with the company for 25 years, but he isn't a celebrated stock picker. He probably won't stray too far from Buffett's playbook of investing in undervalued and cash-rich businesses with wide moats, but he may also miss some big opportunities. So, instead of focusing on what Abel might or might not invest in, let's look back at two of Buffett's long-term plays on the financial sector: American Express (NYSE: AXP) and Visa (NYSE: V). Buffett didn't sell either of these stocks as he trimmed his positions in Apple, Bank of America, and his other top holdings to raise more cash over the past year. Let's see whether either one of these resilient stocks is still worth buying in this volatile market. Warren Buffett initially invested in American Express in 1964, but he didn't significantly boost Berkshire's stake in the financial services giant until 1991. Today, Berkshire owns 21.6% of the company through its 151.6 million shares, worth roughly $44.4 billion. That accounts for 15.9% of Berkshire's portfolio, making it its second-largest position after Apple. Buffett started accumulating shares of Visa in 2011, three years after its public debut. It now owns 8.3 million shares, which are worth about $3 billion and give it a 0.4% stake in the company. That position accounts for 1.1% of Berkshire's portfolio and ranks much lower as its 17th-largest holding. American Express and Visa are typically known as credit card companies, but they operate under different business models. American Express is a bank that issues its own cards, handles its own accounts, and operates its own payment processing network. Visa isn't a bank and doesn't issue any of its own cards. It only partners with banks and other financial institutions to issue co-branded cards that are compatible with its payment processing network. American Express has fewer cardholders than Visa because it approves its cards only for lower-risk, higher-income customers. Visa has a much broader reach because it issues its cards through over 14,500 financial institutions worldwide. Those partners, who are responsible for the debt, may approve their cards for riskier and lower-income customers. Visa generates most of its revenue by charging its merchants "swipe fees" (usually 2%-3% of the transaction amount). American Express also charges similar swipe fees, but it generates a lot of its revenue from its interest payments and annual fees. Visa and American Express are both sensitive to higher interest rates, which curb consumer spending. However, higher rates will also boost American Express's net interest income on its credit card loans to offset some of the pressure from slower consumer spending. Its focus on more affluent customers should also insulate it from protracted economic downturns. Visa doesn't have those safety nets because it's not a bank, but its global diversification could protect it from regional recessions. American Express, Visa, and Mastercard all face constant pressure from individual businesses, merchant groups, and government regulators to reduce their swipe fees. However, Visa and Mastercard (which operates a similar business model to Visa) are arguably bigger targets because they control much bigger slices of the global credit card market than American Express. From 2024 to 2027, analysts expect American Express and Visa to both grow their earnings per share (EPS) at a compound annual growth rate (CAGR) of about 13%. However, American Express stock only trades at 19 times this year's earnings and pays a forward yield of 1.1%. Visa stock appears a lot pricier at 34 times forward earnings and pays a lower forward yield of 0.7%. Both stocks still look like evergreen investments. But if I had to pick one over the other, I'd pick American Express because its business is more resistant to interest rate swings, faces less antitrust pressure, and looks cheaper relative to its growth potential. That's probably why Berkshire still owns significantly more shares of American Express than it does of Visa. Before you buy stock in American Express, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and American Express wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Leo Sun has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy. Better Buffett Stock: American Express vs. Visa was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
2 days ago
- Business
- Forbes
Amazon CEO Andy Jassy Shares 3 Reminders To Stay Sane As A Leader
Andy Jassy's advice is applicable to leader's mental health. When Andy Jassy transitioned into the CEO role at Amazon, he didn't just inherit one of the most complex businesses on the planet. He stepped into an identity shift that would challenge even the most seasoned leaders. Much like Greg Abel stepping in for Warren Buffett soon, Jassy follows an iconic figure whose shadow looms large. The stakes are high, the spotlight brighter, and the pressures heavier. In a recent interview on How Leaders Lead, Jassy reflected on working alongside Jeff Bezos and shared the key lessons he learned while stepping into the top role. Jassy's advice was framed around achieving operational excellence, but there's a deeper, often overlooked takeaway: these same strategies are also valuable safeguards for leaders' mental resilience and burnout prevention. For CEOs managing high-stakes decisions, nonstop demands, and the quiet weight of personal responsibilities, Jassy's three pieces of advice offer a foundational framework to protect your clarity, capacity, and composure at the top. You don't need to be at the helm of one of the world's largest companies to feel the creeping weight of fragmentation. The higher you go, the more in demand you become, and the easier it is to let core pieces of yourself fall to the side. As Jassy put it: "You have to massively delegate to be successful. When you have 25 businesses across the company, you can't be in the weekly rhythms of each business. It doesn't scale for the businesses—or for you, or the company." Delegation may sound like a simple concept, but it's often the least utilized by leaders nearing the edge of burnout. A recent global survey of over 10,000 leaders found that delegation is the most valuable yet underutilized tool for avoiding exhaustion and decision fatigue. Refusing to delegate is a fast track to complexity overload. CEOs who carry too much eventually collapse under the weight. Delegation isn't just a leadership tool; it's a form of mental triage that protects your capacity to stay sharp. Power shifts change dynamics—sometimes subtly, sometimes dramatically. When leaders move up, even long-standing relationships are tested or transformed. Jassy learned this firsthand: "I knew all the people who were going to report to me because I was on the senior leadership team with them for many years. I had good relationships with virtually all of them. I didn't think it was going to be that big a deal moving into the new job. But what happened was every single relationship reset." Some relationships reset quickly. Others never did. That's not necessarily a failure. It's a natural part of growth. Trying to maintain everything the same after a promotion, or even just growing personally, can create emotional friction. It slows your momentum and ties you to obsolete expectations. Resetting relationships can be a relief. It clears the invisible pressure of maintaining false harmony. With executive stress already running high, the emotional bandwidth you preserve by letting go of unreciprocated rapport and other drainers becomes critical. Leadership walks a fine line between confidence and humility. The temptation to appear unflappable is strong, especially at the top. But pretending to know everything is not a strength. It's a liability. Jassy encouraged leaders to balance humility with instinct: "At almost every leadership level, when you step up, you want to have some humility and respect for what you don't know and what you have to learn. You can also sometimes have maybe too much respect for it." He went on: "There were some things that seemed a little bit off to me. It was a good reminder that you just have to trust your own instincts and your gut sometimes. And even if you're wrong, people will show you why you're wrong—and it's OK." The danger lies not in being wrong, but in silencing your judgment out of fear. CEOs who ignore their instincts out of doubt often become anxious, uncertain, and misaligned. Their executive presence suffers, and their teams feel it. Doubt drains your energy. Clarity, however imperfect, keeps you moving. Andy Jassy's reflections weren't just tactical advice for new CEOs and others making organizational transitions. They were foundational emotional survival strategies in disguise. As much as leaders manage people and businesses, they also manage themselves. Whether it's the clarity that comes from the necessary delegation, the emotional freedom that comes from resetting relationships, or the quiet confidence that comes from trusting your gut, Jassy's lessons offer more than guidance. They offer a way to lead without losing yourself in the process.
Yahoo
2 days ago
- Business
- Yahoo
The Zacks Analyst Blog Highlights Berkshire Hathaway, AbbVie, Intuitive Surgical, Hamilton Beach Brands and AXIL Brands
Chicago, IL – May 30, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Berkshire Hathaway Inc. (BRK.B), AbbVie Inc. ABBV, Intuitive Surgical, Inc. ISRG, Hamilton Beach Brands Holding Co. HBB and AXIL Brands, Inc. AXIL. The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc., AbbVie Inc. and Intuitive Surgical, Inc., as well as two micro-cap stocks Hamilton Beach Brands Holding Co. and AXIL Brands, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>> Pre-Markets Stay Green After Tariff Ruling, Jobless Claims, Q1 GDP Today's Featured Research Reports Shares of Berkshire Hathaway have gained +10.8% over the year-to-date period against the Zacks Insurance - Property and Casualty industry's gain of +16.1%. The company is one of the largest property and casualty insurance companies, with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility. Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. However, exposure to cat loss induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire. (You can read the full research report on Berkshire Hathaway here >>>) AbbVie's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+6.1% vs. -4.2%). The company beats first-quarter estimates for both earnings and sales. AbbVie has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. It expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise. (You can read the full research report on AbbVie here >>>) Shares of Intuitive Surgical have outperformed the Zacks Medical - Instruments industry over the year-to-date period (+6.9% vs. -9.2%). The company ended the first quarter on a strong note, beating estimates on both counts. Revenues are likely to be driven by continued improvement in the company's da Vinci procedure volume, coupled with strong Ion procedure growth. ISRG topline is also likely aided by rising pricing of procedures to fight inflationary pressure. Launch of da Vinci SP in Europe and da Vinci 5 in U.S. market are bringing additional system placements. Opening new manufacturing facilities in Germany and Bulgaria should boost supply. However, the continued slowdown in bariatric procedures is likely to continue in 2025 amid the rise of GLP-1 medications, hurting top-line growth. ISRG also expects a slow, gradual decline in Instruments & Accessories revenues per procedure over the next few years due to growth in benign procedures. Operating expenses are likely to be on the higher side in 2025. (You can read the full research report on Intuitive Surgical here >>>) Hamilton Beach Brands' shares have outperformed the Zacks Household Appliances industry over the year-to-date period (+13.6% vs. -27.7%). This microcap company with market capitalization of $253.29 million posted strong first-quarter 2025 results, with gross margin up 120 bps to 24.6% despite tariff headwinds, driven by favorable mix and pricing. Operating profit rebounded to $2.3 million amid tight cost control. Tariff mitigation, sourcing shifts, and foreign trade zone certification support margin resilience. The high-margin HealthBeacon unit is scaling rapidly, with 50%+ patient growth expected in 2025, aided by a new OptumHealth launch. Premium products like CHI and the upcoming Lotus line support share gains in the $4 billion U.S. appliance market. E-commerce now accounts for 40% of U.S. sales, driven by a strong digital strategy. Geographic and channel diversification, including growth in Mexico and a new Sunkist partnership, enhances stability. Solid liquidity and disciplined capital allocation reinforce long-term growth prospects. (You can read the full research report on Hamilton Beach Brands here >>>) Shares of AXIL Brands have outperformed the Zacks Consumer Products - Staples industry over the year-to-date period (+60.4% vs. +3.2%). This microcap company with market capitalization of $41.03 million offers a compelling growth narrative driven by strong direct-to-consumer momentum, supported by enhanced e-commerce, data-driven marketing, and favorable Cyber Monday timing. Gross margins remained robust at 71.7% in the third quarter of fiscal 2025 due to operational efficiency and product mix, with adjusted EBITDA margin expanding to 12.9%. Improved liquidity ($4.77 million in cash) and positive operating cash flow ($1.7 million for the first nine months of fiscal 2025) enhance financial flexibility. Strategic United States supply chain shifts bolster resilience, while global direct-to-consumer-led expansion reduces domestic dependency. However, risks persist: weak inventory turnover, vendor and receivables concentration, elevated selling, general, and administrative expenses, and uncertain execution of domestic manufacturing could pressure margins and limit scalability if growth lags. (You can read the full research report on AXIL Brands here >>>) Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Hamilton Beach Brands Holding Company (HBB) : Free Stock Analysis Report AXIL Brands, Inc. (AXIL): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Is Berkshire Hathaway Stock a Buy Now?
It has been a few weeks since Warren Buffett shocked Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investors by announcing his intention to step down as CEO at the end of 2025 after more than 60 years at the helm of the massive conglomerate. Berkshire's stock reacted negatively after the announcement and remains about 7% below where it was before the company's annual meeting, where the news was revealed. And it's worth noting that this is during a period when the S&P 500 gained about 2%. Obviously, the leadership of the legendary billionaire investor is a big reason many people own the stock. However, the company's succession plan has been in place for a long time, and in the foreseeable future, not much is really changing even though Warren Buffett is stepping down. So here's a summary of why I'm not planning to sell a single share of Berkshire, and why investors may want to consider adding after the post-Buffett dip. A diverse and recession-resistant portfolio, all in one stock Berkshire Hathaway owns more than 60 subsidiary business, according to its website, and it's important for investors to realize that all of its businesses have their own leadership teams that largely operate independently of Berkshire's central office. In other words, Buffett has virtually nothing to do with the day-to-day operations of GEICO, Dairy Queen, Duracell, or any of Berkshire's other businesses. Ajit Jain has been in charge of insurance operations, and Greg Abel, the incoming CEO, has already been in charge of non-insurance operations, so there really isn't that much changing with Buffett's departure. Most of Berkshire's businesses are rather recession resistant. For example, GEICO will keep collecting auto insurance premiums and Berkshire Hathaway Energy will receive payment for its utility services, even in an economic downturn. In addition to its businesses, Berkshire has a large portfolio of common stocks, as well as about $348 billion in cash on its balance sheet. The stock portfolio is managed by Buffett along with two portfolio managers, Todd Combs and Ted Weschler, and while Abel will have the final say on capital allocation, it's likely that the two managers will play a somewhat larger role in the stock portfolio. They've both established solid track records of stock-picking so far, and this could ultimately be a net positive for investors, as both have a somewhat more modern (that is, tech-centric) stock approach. Finally, Berkshire's cash gives management unprecedented financial flexibility to take advantage of opportunities as they arise. However, with interest rates still relatively high and the cash stockpile earning well in excess of $10 billion in annual interest income for Berkshire, Abel and his team aren't likely to be in a big rush to put it to work. But if a recession or market crash arrives, no company will have as much financial firepower as Berkshire. It's cheaper than you might think At the current share price, Berkshire has a market cap of $1.085 trillion, making it the only non-technology company in the trillion-dollar club. But just because it has a 13-figure valuation doesn't necessarily mean it's an expensive stock. Here's why. Two of the three components of Berkshire are very easy to value. It has about $348 billion in cash, and the current market value of the stock portfolio is just under $277 billion as of this writing, not including an undisclosed "secret stock" position Berkshire is accumulating. Backing these two numbers out of the valuation shows that the market is valuing Berkshire's operating businesses at $460 billion. Over the past four quarters, the company has produced about $33 billion in operating profit, excluding investment income, which mainly comes from interest on its cash. So that means Berkshire trades for less than 14 times earnings, at least in terms of its fully owned businesses. Plus, there's a big case to be made that Berkshire could unlock significant profitability from its massive insurance business by improving its technology. The bottom line I've said before that if I could only own one stock, it would be Berkshire. And although I own far more than just one stock, Berkshire is one of my largest investments and I have no plans to change that. I'd even go so far as to say that it's never a bad time to buy shares of Berkshire. It holds up better than most other stocks during most downturns and has a solid history of coming out even stronger on the other side. The bottom line is that Berkshire offers a diverse collection of rock-solid businesses all in one investment, and it has unmatched financial flexibility. With all the right pieces in place for continued success, Berkshire Hathaway could be a smart buy on any weakness. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
25-05-2025
- Business
- Yahoo
Warren Buffett's Berkshire Hathaway Runs The Dirtiest Coal Plants In America: His Successor Greg Abel Is Defending Them Despite Starting Out In Clean Energy
Greg Abel, set to succeed Warren Buffett as CEO of Berkshire Hathaway, started his career pushing for geothermal energy in California. But as he prepares to take over from one of the world's most influential investors, Abel now oversees a huge fossil fuel empire and defends coal power, even as the climate crisis worsens. What Happened: Abel started at CalEnergy in 1992, according to the Los Angeles Times. Working with geothermal plants at the Salton Sea and China Lake that produced clean electricity, he rose through the ranks, ultimately becoming president. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — In 1999, CalEnergy purchased MidAmerican Energy, and soon, Buffett's Berkshire Hathaway became a major investor. This deal marked Buffett's entry into the energy sector and brought Abel into his inner coterie. Despite his start in clean energy, at the company's annual meeting in Omaha, Abel responded to a question about Berkshire's coal pollution, which is ranked worst among major U.S. firms for nitrogen oxide emissions according to a Reuters investigation, by stating that utilities like MidAmerican were molded by state policies. "We had to recognize we implement public policy across these states," he said. Abel also said that coal plants were still vital to grid stability, particularly in Iowa, where five coal units are still It Matters: Abel's comments, alongside Berkshire's lobbying record, indicate that the company is reluctant to hasten a transition to clean energy. Grassroots environmental organization Sierra Club criticized Abel's response, saying: "Berkshire has teams of aggressive lobbyists and lawyers who fight against any regulation on the state and federal levels that would incentivize transitions to clean energy." As per data compiled by Berkshire spent $65 million lobbying the federal government in the last ten years. It has called for the loosening of air pollution regulations and filed lawsuits against federal and state environmental policies. The company has also delayed closures of its coal plants in Utah and Wyoming, and is asking the Trump administration to block pollution-control mandates put in place to protect air quality in national parks. While California has almost eliminated coal from its power mix, Berkshire's PacifiCorp still operates six coal plants across the Western U.S. A PacifiCorp spokesperson told the LA Times that coal retirement timelines are not firm commitments, and said they are subject to change. Meanwhile, according to Bloomberg, Berkshire's investment in Occidental Petroleum stock has not turned out to be a successful bet, with analysts estimating that the company suffered around $4.5 billion in losses. As Abel steps into Buffett's role, the contrast between his earlier involvement in clean energy and current coal-friendly stance raises questions about the future path of one of America's most impactful companies. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo courtesy: mark reinstein / Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Warren Buffett's Berkshire Hathaway Runs The Dirtiest Coal Plants In America: His Successor Greg Abel Is Defending Them Despite Starting Out In Clean Energy originally appeared on
