Warren Buffett’s investment firm, Berkshire Hathaway, has increased its stake in Sirius XM Holdings Inc. The company bought an additional 2,308,119 shares of Sirius XM for around $54 million between January 30 and February 3, 2025. This purchase brings Berkshire’s total ownership to 119,776,692 shares, representing about 35.4% of Sirius XM.
The move comes despite Sirius XM’s stock being down 52% over the past year. The company recently reported its fourth-quarter financial results, which highlighted its focus on growing its in-car subscription business, leveraging streaming capabilities, and expanding its ad-supported audio content. Buffett, known as the Oracle of Omaha, has a historical preference for companies trading below their intrinsic value.
Sirius XM’s current financial metrics, such as a price-to-earnings ratio of 7.03x and a price-to-sales ratio of 0.96x, suggest it could be a potential value investment. While Buffett has not publicly commented on the specifics of this investment, it may indicate his confidence in Sirius XM’s ability to recover and grow.
buffett bets on SiriusXM recovery
Investors are left to speculate on the reasons behind Berkshire’s decision to bolster its stake in the company. As of Wednesday, Sirius XM Holdings’ stock trades at $24.62, within a 52-week range of $20.47 to $51.80. The market has responded to Berkshire’s increased stake with cautious optimism, with shares of Sirius XM experiencing a slight uptick following the announcement.
Despite the recent challenges faced by Sirius XM, Berkshire Hathaway’s investment strategy focuses on companies with solid market positions and long-term growth potential. By increasing its stake, Berkshire is making a calculated bet on Sirius XM’s ability to adapt and thrive in the evolving digital media landscape. Sirius XM CEO Jennifer Witz has outlined the company’s strategic plans for 2025 and beyond, which include significant investments in digital platforms, enhancing its music streaming services, and expanding its podcasting capabilities.
These initiatives aim to attract a younger audience and diversify its offerings, positioning Sirius XM for growth despite tough market conditions. While many analysts on Wall Street currently rate Sirius XM as a hold, Berkshire Hathaway’s move reaffirms the importance of a long-term investment perspective, emphasizing the potential rewards of staying committed to companies with promising futures.
