Warren Buffett's 10-Year Stock Pick: Why He's Likely to Keep Buying More

In the ever-evolving world of investing, few names carry as much weight as Warren Buffett. The Oracle of Omaha, as he's affectionately known, has a track record that speaks for itself. One stock, in particular, has caught his eye for the past 10 quarters, and it's a name that investors might want to take note of: Sirius XM Holdings Inc. (SIRI).



Sirius XM, the satellite radio giant, has been a consistent addition to Buffett's portfolio since the fourth quarter of 2021. In the latest quarter, Berkshire Hathaway increased its stake in Sirius XM by 2.31 million shares, bringing its total holding to 117.46 million shares. So, what makes this stock so appealing to the legendary investor?

1. Stability and Predictability: Sirius XM operates in a subscription-based business model, which provides a stable and predictable revenue stream. The company has a large and growing subscriber base, with over 33 million subscribers as of the fourth quarter of 2024. This stability is attractive to Buffett, as it reduces the risk of significant fluctuations in earnings and cash flow.
2. Consistent Growth: Sirius XM has demonstrated consistent growth in its subscriber base and revenue over the years. The company has consistently increased its subscriber count and revenue, even during economic downturns. This consistent growth is a key aspect of Buffett's investment philosophy, as he looks for companies that can grow their earnings and cash flow over the long term.
3. Long-term Focus: Buffett is known for his long-term investment horizon, often holding stocks for decades. Sirius XM's business model and growth prospects suggest that it is well-positioned for long-term success. The company's satellite radio business has a wide moat, with limited competition and high barriers to entry. Additionally, Sirius XM is expanding into new areas, such as connected car services and podcasting, which further enhance its long-term growth prospects.
4. Dividend Yield: While not a primary consideration for Buffett, Sirius XM's dividend yield is another attractive aspect of the stock. As of February 18, 2025, Sirius XM has a forward dividend yield of 3.98%, which is higher than the average dividend yield of the S&P 500. This dividend yield provides an additional source of income for investors and further enhances the stock's appeal.



In conclusion, Sirius XM Holdings Inc. aligns well with Warren Buffett's investment philosophy, particularly his focus on stability, predictability, and consistent growth. The company's subscription-based business model, consistent growth, long-term growth prospects, and dividend yield make it an attractive investment for Buffett and his investment strategy. As Buffett continues to add to his stake in Sirius XM, investors may want to consider following his lead and adding this stock to their portfolios.

Remember, Buffett's favorite holding period is "forever," so it's essential to have a long-term perspective when investing in stocks like Sirius XM. By focusing on stability, predictability, and consistent growth, investors can build a strong portfolio that stands the test of time.