American Express (AXP) stock plummeted 5.04% in intraday trading on Tuesday, March 4th, 2025, as the broader market tumbled. The credit card giant's shares took a hit amid broader investor concerns about the banking sector and economic uncertainty.

The sell-off in AXP coincided with reports that Warren Buffett's Berkshire Hathaway had significantly reduced its exposure to several bank stocks in the fourth quarter of 2024. Notably, Berkshire sold shares of Bank of America, Citigroup, Capital One, and Nu Holdings.

However, Buffett did not unload a single share of American Express or Ally Financial, suggesting the legendary investor still sees value in these two financial institutions despite the volatile market conditions.

Buffett's decision to maintain his stake in American Express is noteworthy, given the company's strong track record and ability to adapt to changing consumer preferences. AXP has consistently delivered best-in-class asset quality and has been a long-term holding in Berkshire's portfolio.

Ally Financial, on the other hand, is the largest auto lender in the United States and has recently refocused its business strategy to capitalize on its core strengths. With over $140 billion in deposits and an average FICO score of over 700 for its auto loan originations, Ally could potentially benefit as interest rates stabilize.

While the exact reasons for Buffett's sell-off of other bank stocks remain unknown, his continued faith in American Express and Ally Financial suggests that these two companies may be better positioned to navigate the current economic landscape.