Warren Buffett Buys More Shares Of Stock Down 52% Over Last Year: Here's What The Oracle Of Omaha Purchased

Berkshire Hathaway Inc BRKBRK CEO Warren Buffett was able to once again beat the performance of the S&P 500 in 2024, which came as he sold shares of several of his larger positions and added to his cash balance.

Buffett isn't buying much, but one stock continues to catch his attention.

What Happened: Buffett has invested in value stocks over the years, preferring this method of investing in companies trading below their value over investing in unprofitable growth stocks.

This might explain why Buffett could be the reason Berkshire Hathaway is scooping up more shares of satellite radio company Sirius XM Holdings Inc SIRI.

A new SEC filing showed Berkshire Hathaway purchased 2,308,119 shares for around $54 million from Jan. 30 through Feb. 3.

The purchases came after Sirius XM Holdings reported fourth-quarter financial results that beat analyst estimates.

Berkshire Hathaway now owns 119,776,692 Sirius XM shares — around 35.4% of the company, as reported by CNBC.

The firm first bought Liberty Media stocks in 2016. It later added to its Sirius XM-specific stake in 2024 as Liberty underwent changes to its public holding companies.

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Why It's Important: Buffett has not publicly commented on Sirius XM Holdings. It’s also unclear whether it’s him or another Berkshire investor buying the shares.

Berkshire Hathaway also added Sirius XM shares in December. The move came as the Buffett-led conglomerate held its cash and sat on the sidelines of the stock market.

Sirius XM stock is down 52% over the last year. This could make the stock a value play with the right financials.

During the fourth-quarter results, Sirius XM CEO Jennifer Witz put an emphasis on the company prioritizing its in-car subscription business, leveraging streaming capabilities and growing its ad-supported audio.

The company currently trades with a price-to-earnings ratio of 7.03x and has a price-to-sales ratio of 0.96x, both considered cheap for value stocks.

Investors are eagerly awaiting public comments from Buffett on why Berkshire Hathaway is a big buy from the company. Until then, investors may just have to invest alongside the Oracle of Omaha or take a wait and see approach.

Price Action: Sirius XM Holdings stock trades at $24.62 on Wednesday versus a 52-week trading range of $20.47 to $51.80.

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