Warren Buffett’s Berkshire Hathaway owns shares in over 40 companies. As 2025 begins, some stocks in the portfolio look very attractive. One stock Berkshire has been buying more of is Sirius XM Holdings.
Berkshire now owns almost 35% of this satellite radio company. That is the second-largest stake in Berkshire’s portfolio, not counting the companies it owns wholly. Sirius XM has a monopoly in satellite radio.
This makes it a very profitable business. The company’s revenue growth has been limited. Subscriber numbers peaked six years ago.
But Sirius XM is making strategic moves that could lead to future growth. For example, it introduced an ad-supported version. Sirius XM could be a valuable long-term investment, with shares trading at less than 8 times forward earnings.
Buffett sold several large bank stocks after the banking turmoil of 2023, but he kept a significant position in Capital One Financial. Berkshire holds about $1.6 billion worth of the stock.
Capital One’s credit card business charges high interest rates on debt. This makes the company extremely profitable. Its net interest margin is over 7%.
Buffett’s Sirius XM investment strategy
That beats many other large banks. Capital One plans to buy Discover Financial Services.
This deal would dramatically expand Capital One’s credit card business and reduce its reliance on other payment processors. Capital One trades at just 1.12 times book value.
It remains an appealing investment. Berkshire’s huge investment in Amazon gets a lot of attention. However, it’s important to highlight Amazon’s strong dual business model.
Amazon dominates e-commerce. Its platform is bigger than that of its next 10 competitors combined. Right now, only 16% of U.S. retail sales are from e-commerce.
This leaves a lot of room for growth. Amazon Web Services (AWS) is the leader in cloud computing and is by far the most profitable part of Amazon.
The cloud computing market is expected to triple by 2032. AWS is positioned to drive a lot of profit growth for years to come. The best stock to choose depends on your own investment strategy and financial situation.
However, Sirius XM Holdings, Capital One Financial, and Amazon are some of the most compelling investments in Berkshire Hathaway’s portfolio. As 2025 moves forward, each offers strong potential for long-term growth.
