Better Warren Buffett Stock: Chevron vs. American Express

Investors often scour the portfolios of well-known investors for stock ideas. When they do that with Warren Buffett's portfolio of stocks, owned within his investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), they'll find a collection of iconic companies. Two that present very different investment propositions today are American Express (NYSE: AXP) and Chevron (NYSE: CVX). While these two companies are very different, that dichotomy might be the biggest selling point for Chevron.American Express hails from the finance sector, describing itself as a globally integrated "payments" company. That's a pretty vague description. What most people will know American Express for is its namesake credit card. It competes with the likes of Mastercard and Visa. But there's a nuance here because American Express has long focused on higher-end customers. Such customers often spend more and are more resilient to economic volatility, leading to a fairly strong business foundation for this card issuer. So, the fees it collects for processing transactions are highly reliable over time.Chevron couldn't be more different. It operates in the energy sector with a globally diversified portfolio of oil and natural gas production, transportation, and processing assets. Having exposure to the entire energy sector, from the upstream (production) to the downstream (processing), helps to soften the ups and downs, but Chevron's top and bottom lines are still going to track along with energy prices. Energy prices are prone to dramatic and swift swings.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool