Does Warren Buffett Know Something Wall Street Doesn’t? Why the Billionaire Investor Owns This High-Yielding Dividend Stock.
From Yahoo Finance: 2025-05-10 06:50:00
Berkshire Hathaway is the largest shareholder of SiriusXM, but the stock has declining subscribers and faces fierce competition from streaming music services. With high debt and a risky outlook, it may not be a wise investment. Warren Buffett’s team may have made a mistake with this investment.
SiriusXM is struggling with declining revenue and subscribers, facing competition from Spotify and other streaming services. The company’s attempts to pivot with a stand-alone streaming app and podcast rights have not been successful. With a heavy debt load, its future looks uncertain.
Despite Berkshire Hathaway’s ownership, SiriusXM is not a significant holding for the company. With a market cap of $7 billion, even a tenfold increase would not significantly impact Berkshire’s portfolio. The company’s heavy debt and declining industry make it a risky investment, despite its 5% dividend yield.
SiriusXM’s declining revenue, heavy debt, and lack of competitive edge make it a risky investment. Even with Berkshire Hathaway’s ownership, it may not be a wise choice for investors. The Motley Fool Stock Advisor team does not recommend SiriusXM, citing better investment opportunities.
If you’re considering investing in SiriusXM, be cautious. The stock’s declining revenue and high debt levels pose significant risks. Despite a high dividend yield, it may not be a wise choice. The Motley Fool Stock Advisor team recommends other stocks over SiriusXM for potential growth and returns.
Read more at Yahoo Finance: Does Warren Buffett Know Something Wall Street Doesn’t? Why the Billionaire Investor Owns This High-Yielding Dividend Stock.