Warren Buffett Continues to Buy Sirius XM Stock Despite Poor Performance

Warren Buffett continues to buy Sirius XM Holdings (SIRI) despite its poor performance over the past five years, as the stock pays a hefty dividend yield of 4.57%. Buffett owns 35% of the company and earns $129.36 million per year in dividend payments. SIRI has a consensus Moderate Sell rating among Wall Street analysts, with a price target of $22.33 implying 8.07% downside from current levels.

Warren Buffett's investment firm, Berkshire Hathaway, has recently increased its stake in Sirius XM Holdings (SIRI), despite the company's poor performance over the past five years. The investment marks a notable shift in Buffett's strategy, as he typically focuses on major banking institutions. According to the latest filings, Berkshire Hathaway acquired nearly 20 million shares in Sirius XM from the third quarter of 2024 to the first quarter of 2025, valued at approximately $459 million [2]. This acquisition, made at an average price of $22.95 per share, indicates Buffett's strategic bet on the entertainment sector.

Berkshire Hathaway now holds around 119.8 million shares in Sirius XM, representing a stake exceeding 35% of the company's total outstanding shares. This substantial investment underscores Buffett's confidence in Sirius XM's potential and its belief in the company's strong brand and consistent revenue model. Despite a recent decline in Sirius XM's stock price, which dropped by 45% over the past year, the company's attractive 5.2% dividend yield continues to draw income-focused investors [2].

The investment aligns with Berkshire's strategic goals of diversification and seeking out promising sectors for investment. Buffett's decision to increase his stake in Sirius XM, despite the poor performance over the past five years, can be attributed to the company's strong fundamentals and long-term growth prospects. The investment is expected to have a positive impact on Sirius XM's market position, attracting other investors and enhancing the company's credibility [2].

Buffett's belief in Sirius XM's future is further supported by the company's diverse programming and loyal customer base. The investment by Berkshire Hathaway is expected to have a positive impact on Sirius XM's market position, attracting other investors and enhancing the company's credibility [2].

In conclusion, Buffett's investment in Sirius XM Holdings demonstrates his confidence in the company's long-term growth potential and profitability. Despite the recent decline in stock price, the company's strong fundamentals and attractive dividend yield make it an appealing investment for income-focused investors.

References:
[1] https://www.nasdaq.com/articles/warren-buffett-owns-9-ultra-high-yield-dividend-stocks-heres-best-bunch
[2] https://www.ainvest.com/news/berkshire-hathaway-invests-459-million-sirius-xm-boosting-stake-35-2507/