Berkshire Hathaway Invests $459 Million in Sirius XM, Boosting Stake to 35%

Warren Buffett’s investment firm, Berkshire Hathaway, has recently made a significant move by investing in Sirius XM. This investment marks a notable shift in Berkshire’s investment strategy, as the firm has historically focused on major banking institutions. The latest filings from Berkshire Hathaway reveal that the company acquired nearly 20 million shares in Sirius XM over the period from the third quarter of 2024 to the first quarter of 2025. This acquisition, valued at approximately $459 million, was made at an average price of $22.95 per share, indicating Buffett’s strategic bet on the entertainment sector.

With this purchase, Berkshire Hathaway now holds around 119.8 million shares in Sirius XM, which represents a stake exceeding 35% of the company’s total outstanding shares. This substantial investment underscores Berkshire’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 long-term appeal remains strong. Sirius XM’s financial reports for the first quarter of 2025 show a 4% decrease in revenue to $2.07 billion and a 6% dip in earnings per share to $0.59. Additionally, the company experienced a 5% decline in its core segment revenue. However, Sirius XM’s attractive 5.2% dividend yield continues to draw income-focused investors, who are attracted to the brand’s strong reputation and consistent income model.

Berkshire Hathaway’s spokesperson stated, “Our investment in Sirius XM reflects our belief in the strength of the brand and its business model that offers revenue consistency.” This investment aligns with Berkshire’s strategic goals of diversification and seeking out promising sectors for investment. The company has recently reduced its stakes in major banks such as Bank of America, JPMorgan Chase, and Wells Fargo, indicating a broader diversification strategy.

Sirius XM’s ability to recover from short-term challenges is supported by its diverse programming and loyal customer base. This makes it a promising venture for investors like Buffett, who recognize the potential beyond immediate financial setbacks. 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. This move also reflects Buffett’s belief in the future of the audio entertainment industry, which continues to evolve with the increasing demand for digital content.

In addition to Berkshire Hathaway’s investment, other stakeholders have shown interest in Sirius XM. Bessemer Group Inc. holds a stake in Sirius XM, valued at $127,000, further highlighting the company’s appeal to investors and its potential for growth. This investment by Bessemer Group Inc. is a testament to Sirius XM’s strong financial performance and its ability to generate value for shareholders.

Overall, Buffett’s investment in Sirius XM is a significant development in the audio entertainment industry. It underscores his confidence in the company’s growth potential and profitability, and is expected to have a positive impact on Sirius XM’s market position. This investment aligns with Buffett’s long-term vision and his investment philosophy, which focuses on companies with strong fundamentals and long-term growth prospects.