Buffett’s Bold Move: Berkshire Embraces Sirius XM

Key Points

1. Berkshire Hathaway acquired approximately 20 million shares of Sirius XM between Q3 2024 and Q1 2025, totaling around $459 million, increasing its stake to over 35% of Sirius XM's outstanding shares.

2. Sirius XM's stock price fell by 45% over the past year, from $41.60 to $24.29, underperforming the S&P 500, which gained over 30% in the same period.

3. Sirius XM's Q1 2025 report showed a 4% decline in revenues to $2.07 billion and a 6% decrease in earnings per share to $0.59, missing analyst expectations.

4. A key attraction of Sirius XM is its 5.2% dividend yield, which may appeal to income-focused investors like Berkshire Hathaway.

5. Despite short-term financial challenges, analysts suggest Sirius XM's long-term growth potential and stable revenue streams may have influenced Berkshire's investment decision.