Billionaire investor Warren Buffett has shifted his investment strategy, investing $459 million in Sirius XM (NASDAQ:SIRI) after selling his stakes in Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM), and Wells Fargo (NYSE:WFC).
What Happened: Buffett’s investment firm, Berkshire Hathaway, acquired approximately 20 million shares of Sirius XM between Q3 2024 and Q1 2025.
This investment, calculated based on an average share price of $22.95, boosts Berkshire’s total holdings in Sirius to nearly 120 million shares, valued at approximately $2.9 billion.
According to Hathaway's latest Form 13F filings, the purchase represents an effort to capitalize on a dip in Sirius XM’s stock, which has plummeted about 45% from its 52-week high of $41.60 to $24.29.
Despite recent financial challenges, including a 4% revenue drop in Q1 2025 and ongoing subscriber losses in Q2, Sirius XM’s strong brand and recurring revenue model likely offer long-term value to Buffett.
Also Read: Buffett Advocates For Stocks Over Real Estate As Long-Term Investments: ‘There’s So Much More Opportunity In Stock Market Than In Real Estate’
This strategic move follows Buffett’s consistent offloading of shares from Bank of America, JPMorgan Chase, and Wells Fargo, thereby freeing up a significant cash reserve for new investments.
Why It Matters: The shift in Buffett’s investment strategy underscores his confidence in Sirius XM’s long-term potential, despite its recent financial setbacks.
The investment in Sirius XM, a company known for its strong brand and recurring revenue model, aligns with Buffett’s investment philosophy of buying stocks with solid fundamentals at a discount.
Moreover, the offloading of shares from Bank of America, JPMorgan Chase, and Wells Fargo, suggests a potential shift in Buffett’s view on the banking sector.
This move could signal a broader trend among investors, who may also be reassessing their positions in these banks.
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