Warren Buffett’s investment company-Berkshire Hathaway, invested in Sirius XM Radio stock, in 2016. Their 13F filing last year states the ownership of stock is at 172.3 million. A 13F filing is a filing with the Securities and Exchange Commission, which is also called the Information Required of Institutional Investment Managers Form. This is a quarterly filing that institutional investment managers must file with $100 million in the qualifying asset. The stake of Sirius XM Radio is worth $824 million based on a close on a Monday in May 2017. Berkshire Hathaway owned 166.6 million shares at the beginning of the year.
Berkshire Hathaway increased stake buy 5.7 million shares, per the mid-February filing. Berkshire Hathaway and Warren Buffett mean business since increasing stake by 3% isn’t that much of an increase. Buffett is the greatest investor of his generation and since he wants more Sirius XM, he has added shares. In 2009, Sirius XM was in major trouble, almost filing for bankruptcy.Sirius XM became a media giant in 2017, has become a steady cash-generating machine instead of being at a loss. Sirius expects to generate a 1.5 million dollar cash flow as a satellite radio monopoly.
Sirius XM is looking at $5.3 billion in revenue, which is good for a platform that skeptics felt were a transition-related technology that would not last. Buffett does not increase his stakes unless a stock will appreciate over time as there may be better stocks than Sirius XM Radio out there. Today, Sirius XM Radio stock is at $6.34 a share, going up 1.52% Buffett likes Sirius XM Radio stock because Berkshire Hathaway acquired 166.64 million Sirius shares between October and December 2016. This SIRI stake is at 741,547 shares, which is worth $750 million, and this is what Buffett focuses on.