Warren Buffett has upped his stake in another forgotten company recent days – and the share price has surged 12 percent since news broke.
The 94-year-old runs Berkshire Hathaway, which owns dozens of companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen.
Known as the ‘Oracle of Omaha,’ Buffett – who is worth $148 billion – is one of the best-known investors of all time.
As a result, other investors – big and small – closely watch his moves for clues.
That’s why his interest in Sirius XM has piqued Wall Street’s curiosity. He first revealed a stake last year in satellite radio and streaming service.
Then between last Thursday and Monday, Berkshire bought another 2.3 million shares worth $54 million. Buffett’s company now owns more than a third of Sirius XM.
Since Berkshire already owned more than ten percent, it had to make the purchases pubic.
They did that on with a filing to regulators Monday evening – and, since then, the stock price has rise from $23 to $25.79, or 12 per cent.
Warren Buffett – who is 94 – has a 35 percent stake in Sirius XM
Warren Buffett bought 2.3 million shares of Sirius XM – worth $54 million – between January 31 and Monday, February 3. He made the purchases public on Monday evening – and, since then, the stock price has rise from $23 to $25.79, or 12 per cent
Unlike traditional AM/FM radio Sirius XM requires a subscription, and works via satellite signals – making it accessible across the US and Canada, even in remote areas. It also offers a streaming service for mobile and smart devices
The latest purchase came after Sirius XM Holdings on Friday reported fourth-quarter financial results that beat analyst estimates.
Berkshire now owns 119.8 million Sirius XM shares – or 35.4 percent of the company.
Sirius XM, which provides satellite radio and online radio services, has struggled, but is now investing heavily in its podcast platform.
Buffett had hoarded cash for most of 2024, and had a cash stockpile of $325 billion at the end of the third quarter.
In December it emerged scooped up $563 million of stock in Occidental Petroleum, VeriSign – and another tranche of Sirius XM shares
The company purchased roughly $405 million-worth of stock in domestic oil company Occidental Petroleum, around $113 million in broadcasting corporation Sirius XM, and about $45 million in VeriSign, which is a provider of domain name registry services.
None of these stocks had performed well last year, despite the wider market being up close to 26 percent, but all jumped after news of Berkshire’s purchase.
Jennifer Witz, SiriusXM CEO, speaks onstage during a company event at The Tisch Skylights at The Shed on November 08, 2023
Berkshire now owns 35 percent of broadcasting corporation Sirius XM, which hosts radio shows such as The Ramsey Show
Before the purchases, Wall Street watchers had questioned whether Buffett thought the market was overvalued.
He had sold billions in Apple and Bank of America stock and his cash reserve had swelled to the highest percentage since 1990.
Buffett, and his late business partner Charlie Munger, have always been focused on holding stocks over a long period of time – rather than trying to time the market.
Buffett has produced astonishing returns for his investors over the years.
Since taking over Berkshire Hathaway in 1965, he has returned 20 percent annual gains. That is double that of the S&P 500 in that time.
After soaring to record highs following Donald Trump’s victory in the presidential election last month, the stock market has been more volatile in the last several weeks.
Meanwhile, Berkshire Hathaway said on Friday it has shed more than 4,000 jobs over the last year, even as the conglomerate run by Warren Buffett is on pace to post a record annual operating profit.
The filing did not say which businesses have cut, or added, jobs.
Geico cut 7,700 jobs in 2023 as it combated underwriting losses, while Precision Castparts cut 13,400 jobs in 2020 as the COVID-19 pandemic destroyed demand for its aircraft parts.
Buffett, 94, has led Berkshire since 1965. The Omaha, Nebraska-based conglomerate is decentralized, and Buffett is not involved in its subsidiaries’ day-to-day operations.
