Warren Buffett, the ‘Oracle of Omaha’, became one of the most well-respected investors to ever live by consistently beating the markets.
In an era of sky-high valuations, Berkshire Hathaway’s (NYSE: BRK.B) chief executive officer (CEO) has stuck by his principles. Instead of making risky or short-term moves, Buffett adopts a value investing approach. His chief concern is finding stocks that have enduring competitive advantages (economic moats) and which are trading at attractive valuations.
Throughout the course of 2024, Buffett and Berkshire have been net sellers of stocks — to put it in plain old English, they’ve been selling stocks much more than they’ve been buying stocks. In addition, the billionaire is sitting on a record-breaking cash position. On the whole, that’s quite the bearish portent — hinting that Buffett is gearing up for a buying spree after a market-wide correction.
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That pessimistic outlook doesn’t extend to all equities, however — every once in a while, Buffett will either update his portfolio with a new holding or simply increase his stake in a company. Most recently, the latter happened with SiriusXM (NASDAQ: SIRI), as identified by Finbold’s insider trading radar.
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Warren Buffett loads up on SIRI stock after strong earnings
From January 30 to February 3, Warren Buffett purchased SiriusXM stock on 4 occasions — put together, the famed investor bought 2,308,119 SIRI shares. The transactions were executed at prices ranging from $22.79 on the low end to $24.05 on the high end, as revealed in the relevant SEC Form 4 filing.
Once the average price of each transaction and volume are taken into account, the amount of money Buffett invested in the radio company evens out to around $53,957,343. With the purchase concluded, Berkshire now owns 119,776,692 SiriusXM shares — bringing the conglomerate’s holdings up to roughly 35.35% of Sirius’ shares outstanding.
The appeal of SIRI stock is quite clear — the business is, arguably, one of the few legal and publicly traded monopolies in the United States, as the only licensed satellite radio operator in the country. On top of that, it’s trading at quite a discount — at press time, the stock’s forward price to earnings (PE) ratio was just 7.82 — while the trailing PE was 8.07.
In addition, on January 30, the company released its Q4 2024 earnings report. The quarterly report saw both earnings per share (EPS) and revenue beat consensus estimates from Wall Street analysts. As a result, the price of SiriusXM shares surged from a January 29 close of $21.95 to $23.99 by the time of publication on February 4.
Even with this latest 9.29% surge accounted for, the stock is still a bargain — however, readers should note that Buffett’s investments tend to involve long holding periods, and adjust their expectations accordingly.
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