It was no ordinary Wednesday, February 14. This day was pivotal for institutional investors managing over $100 million in assets, as it marked the deadline to file Form 13F with the Securities and Exchange Commission. Essentially, it allowed investors to peek into the buying and selling activities of leading fund managers, amid which one name stands out — Berkshire Hathaway CEO Warren Buffett.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett’s Ongoing Maneuvers in Equities
Under Warren Buffett’s leadership since the ’60s, Berkshire Hathaway’s Class A shares (BRK.A) have delivered astronomical returns. The recently released 13F, however, shows that Buffett remains cautious, selling more stocks than buying, reflecting a net sell-off of $38.3 billion in equities from October 2022 to September 2023.
Buffett’s skepticism is not unwarranted. Historically, the S&P 500’s Shiller P/E has surged above 30 only six times, preceding market downturns. In such a pricey market, Buffett waits for the right opportunities to invest.
Image source: Getty Images.
Buffett’s New Darling: Sirius XM Holdings
Buffett’s interest in Sirius XM Holdings has surged. After quadrupling his position in Q4, the Oracle of Omaha now holds over 40 million shares. Sirius XM stands out as a value stock that aligns with Buffett’s investment philosophy. The satellite-radio operator enjoys a unique market position with strong pricing power, boasting a largely subscription-driven model with steady revenue streams even in economic downturns.
Buffett’s fondness for cyclical businesses is evident in Sirius XM, which benefits from economic expansions and offers a shareholder-friendly capital-return program.
SIRI Stock Buyback (Annual) data by YCharts.
Sirius XM’s forward P/E ratio at a 31% discount to its average P/E over the last five years makes it an attractive buy, perfectly aligning with Buffett’s value-driven strategy, even in a pricey market.
By all means, is Sirius XM Holdings worth your investment?
Though not endorsed by the Motley Fool Stock Advisor, Sirius XM stands out as a value stock, offering a unique opportunity in today’s market.
*Stock Advisor returns as of February 12, 2024
Sean Williams has positions in Sirius XM. The Motley Fool has positions in and recommends Berkshire Hathaway and Chevron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
