Buffett’s Berkshire Hathaway Amplifies Sirius XM Bet Amid Corporate Reorganization
Warren Buffett is hearing sweet songs from Sirius XM, orchestrating a $42M share purchase. This move comes as Berkshire Hathaway ($BRK.A) keeps adding to its stash, making it the top shareholder last month. Even with Sirius XM’s ~50% drop this year, Buffett senses value, especially with Liberty Media’s recent split-off that just offloaded an 83% stake.
- Buffett, who first invested in Sirius XM in 2016, now holds approximately 32.5% of the company’s publicly traded stock — roughly a $3B position.
- This investment is a distinctive equity purchase for Buffett, who has been hoarding bonds while offloading stocks lately — such as Apple and Bank of America.
Financial engineering at play: Berkshire’s buy comes as John Malone reshuffles his Liberty Media empire. By dissecting his stakes, Malone aims to raise the value of each holding — since bundled stocks commonly trade at a “conglomerate discount.” Despite’s recent decline, Buffett’s increased stake suggests he sees potential in this restructured entity — aligning with his long-standing strategy of buying undervalued assets. As Sirius XM takes center stage, we’ll be tuning in to see what happens next.
