Warren Buffett's Berkshire Hathaway invested in Sirius XM, which has fallen 26% presenting buying opportunity.

From NASDAQ:

Warren Buffett led Berkshire Hathaway to a 4,121,700% return since taking over in 1965. The strategy involves buying exceptional businesses, like Sirius XM Holdings (NASDAQ: SIRI). Berkshire acquired 40.2 million shares in 2023, but the stock has since fallen by 26%, presenting a potential buying opportunity.

Sirius XM’s unique position as America’s only satellite radio provider gives it pricing power and a loyal customer base of 31.9 million paying subscribers. The company’s focus on returning profit to investors is evident in the declining share count and healthy earnings per share growth of 45% since 2019.

With a 2.7% dividend yield and low valuation of 12.5 times trailing earnings, Sirius XM aligns with Berkshire’s investing criteria. However, the rise of streaming services poses a threat to its growth potential. Investing in Sirius XM at a low valuation may produce market-beating gains over time.

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Read more at NASDAQ: 1 Warren Buffett Stock Down 26% in 2024. Is It a Buy on the Dip?