What Recession? This Resilient Warren Buffett Stock Just Keeps Plugging Along

Many economists and experts project some level of recession in 2023, which is expected to negatively impact the future earnings of many companies.

But you wouldn't know a recession is right around the bend by looking at the performance of American Express (NYSE: AXP). The payments and card services giant is a longtime favorite of legendary investor Warren Buffett and is a long-time holding in the large equities portfolio of the conglomerate that Buffett runs, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

Not only did AmEx beat earnings estimates in the third quarter, but it also reaffirmed its outlook for the full year, 2023, and 2024. Despite numerous headlines of weakening consumer demand weighed down by outsized inflation and rising interest rates, consumer spending at AmEx continues to be robust, which is one of several reasons this stock just keeps plugging along.

American Express saw strong activity leading to strong guidance

AmEx saw total volume across its end-to-end payments network come in just slightly below the previous quarter but still well above levels seen in 2021. Spending on AmEx cards on travel and entertainment (T&E) continues to exceed management's expectations this year and was up 57% year over year in the third quarter.