Warren Buffett, the billionaire CEO of Berkshire Hathaway, has sold 56% of the company’s stake in Apple. Buffett and his team have been net sellers of stocks over the last two years, selling close to $132 billion more in stocks than they have purchased from October 2022 to June 2024. Berkshire’s stake in Apple decreased by more than 515 million shares, or 56%, to 400 million shares in a period spanning from October 1, 2023 to June 30, 2024.
Despite reducing its stake, Buffett continues to praise Apple’s business model and the strategic initiatives undertaken by CEO Tim Cook. Buffett’s focus has now shifted to Sirius XM Holdings, an unconventional move given his historical preference for more traditional stocks.
Buffett shifts focus to Sirius XM
Sirius XM recently completed a reverse stock split and merged with Liberty Media’s Sirius XM tracking stock. Over the past year, Berkshire Hathaway has built substantial stakes in Sirius XM Holdings and Liberty Sirius XM Group’s stock. As of a recent SEC Form 4 filing, Berkshire holds over 110 million shares in Sirius XM, representing nearly a third of the company’s outstanding shares.
Buffett’s attraction to Sirius XM likely stems from its status as a legal monopoly in the satellite-radio market, providing it with sustainable subscription pricing power. The company’s revenue model, which relies heavily on subscriptions, offers stability compared to its peers, who depend more on cyclical advertising revenues. In a challenging market for value investors, Sirius XM stands out to Buffett and his team as an exceptional opportunity amidst a historically expensive stock market.
