American Express Company (NYSE:AXP) has been identified as one of the best stocks to buy according to billionaire Mario Gabelli. As of Q4 2025, it is the sixth-largest 13F holding for GAMCO Investors, with $156 million invested in the company. Despite a slight decrease in shares from Q3 2025, GAMCO still holds a significant stake in American Express.
Gabelli Funds have been holding AXP stock for an impressive 33 years, making it one of the longest-held stocks in their portfolio. Over this period, the stock has generated aggregate realized and unrealized gains of $456 million. The cumulative total return since Gabelli’s initial purchase is an impressive 9,991%, with an annualized return of 15.0%.
While the stock has seen substantial growth over the years, recent performance has been mixed. In 2026, the stock has declined by nearly 18%, following a 25% return in 2025. Some of this decline can be attributed to concerns about the impact of artificial intelligence disruption on the financial sector, as highlighted in a report from Citrini Research.
However, not all analysts agree with the bearish outlook presented in the report. A Wells Fargo analyst sees the recent selloff as an opportunity to buy the stock at an attractive valuation. He believes that while concerns about job losses from AI are valid, they may not be as significant as some fear.
In its Q4 2025 shareholder commentary, GAMCO Investors highlighted that American Express, along with other financial holdings like Bank of New York Mellon, are benefiting from a steeper interest rate curve, increased deal-making activity, a strong stock market, and robust spending among affluent consumers.
Despite the positive outlook, there have been several insider sales at American Express in recent weeks. Key executives like Raymond Joabar, Ravikumar Radhakrishnan, and Laureen Seeger have sold significant amounts of stock, reducing their direct shareholdings in the company.
American Express Company is a global financial services corporation known for its credit card, charge card, and payment processing services. While the stock has shown impressive long-term growth, investors should carefully consider recent developments and insider activity before making investment decisions.
