Berkshire Hathaway Chairman Warren Buffett
Buffett has been heavily investing in Sirius XM Holdings since 2023.

Warren Buffett, 94, is deemed one of the best-known investors of all time. Wall Street closely follows his trades, most of which have proved massively profitable over the decades.

The Oracle of Omaha's mastery of value investing principles, which involves buying great businesses at cheaper valuations and holding his trades for the long term, helped him amass a wealth of £119.15 billion.

Now, the Berkshire Hathaway chair is bulking up on a once-huge music company that he believes is making a strong comeback.

According to a 2nd February Form 4 filing with the US Securities and Exchange Commission (SEC), the legendary investor bought over 2.3 million shares of Sirius XM Holdings Inc. (NASDAQ:SIRI) worth over £43 million, boosting his total stake to over 119 million shares, or 35.4% of the music company, worth around £2.2 billion.

SiriusXM Stock Price Surges On Buffett's Stake Disclosure

SIRI's share prices jumped on the news, surging by over 12% to close at £20.76 ($25.79) on 5th February as Wall Street's interest in the stock piqued.

Buffett has invested heavily in SIRI, a satellite radio and streaming service, since 2023. The latest move follows the company's Q4 results, where it reaffirmed the 2025 free cash flow and revenue guidance of £925.51 million and £6.84 billion, respectively.

Unlike traditional AM/FM radio, the company's SiriusXM audio business generates revenue from its subscription entertainment service, which works via satellite signals. This makes it accessible in the US and Canada, as well as remote areas.

The company also offers a premium music streaming platform called Pandora and Off-Platform for mobile and smart devices. Sirius XM Holdings claims to have a combined monthly audience of nearly 160 million listeners.

Sirius XM Focuses On Podcast Platform, In-Car Services

Several developments across business segments could drive Buffett's interest in the radio company.

SIRI's subscription entertainment service, SiriusXM, offers 33 million subscribers diverse content, including news, live sports analysts, original shows, and on-demand podcasts.

The company grew its network in podcasting by renewing its agreement with best-selling author and renowned podcaster Mel Robbins. In Q4 2024, Sirius XM Holdings also announced a new deal with ESPN+ to offer unique subscription bundles to new and existing customers.

The company stated in the latest earnings release that full-year 2024 revenues from Pandora and Off-platform, used by over 5.8 million self-pay subscribers, increased 2% year-over-year to £1.73 billion due to growth in podcasting, programmatic sales, and ad tech fees.

Elsewhere, the company launched its SiriusXM service in select Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) EV models, bumping its reach to millions of new customers via cutting-edge streaming integrations. The radio satellite company also launched SXM-9, marking the latest addition to its satellite fleet for enhanced coverage.

Buffett's Sirius XM trading pattern over the last two years could imply that he is confident the company's streaming and radio audience will continue to grow over time. Furthermore, the convergence of SiriusXM's shares with Liberty Media Corp.'s (NASDAQ:LSXM) tracking stocks for a simplified ownership structure and better trading liquidity could also complement the stock's performance.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.

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