AXP
🏆 Warren Buffett’s 1974 investment in American Express exemplifies the ‘hunter’ strategy: buying heavily into a quality company during market panic.
📈 Buffett’s conviction led him to increase his AXP position when others were selling, a move that generated enormous long-term returns.
💎 The ‘hunter’ approach often involves high concentration in a few deeply understood companies with strong competitive advantages.
@adriarivero:
“Buffett is the best example of a hunter. For example, American Express: he invested 42% of Berkshire Hathaway in ’74 when the market was punishing it. His conviction led him to buy more when others sold. Decades later, his investment continues generating enormous benefits and, well, dividends… Buffett is quite clear: if you can find between 5 and 10 companies with long-term competitive advantages, conventional diversification doesn’t make sense for you; it will only reduce your profitability and increase your risk… [Later reference:] …like, for example, Buffett did [with] American Express in the 70s.”
Watch the exact part of the video where @adriarivero talks about American Express here:
Watch the video on YouTube
Read more articles analyzing American Express (AXP) at the provided link. AXP stock.
