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Stock Strategist

Don't Leave Home Without This Stock

We dig into the Ultimate Stock-Picker's Portfolio's Amex position.

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In managing The Morningstar Ultimate Stock-Picker's Portfolio, I'm on a constant search to buy a great business at a good price. You can imagine my excitement, then, when I discovered that not only do a large percentage of the managers I follow own  American Express (AXP), but my colleague at Morningstar, Michael Kon, also has it rated 5 stars.

I initially added American Express to the portfolio in late March, and it almost immediately started adding positive alpha. In the last month, though, coinciding with the sell-off of almost all financial stocks amid credit concerns related to the mortgage market, American Express' stock has fallen back almost to my initial purchase price. As such, I thought it would be a good time to check in with Michael to see if the thesis on the company has changed, or if this is simply another good buying opportunity for what I think is an absolutely fantastic business. (As a reminder please be sure to sign up for my free e-mail alerts to get additional portfolio position updates over time.)

Justin Fuller has a position in the following securities mentioned above: AXP, COF. Find out about Morningstar’s editorial policies.