Warren Buffett has been selling Bank of America stock since July 17, 2024, disposing of over 427 million shares. However, he has added nearly 20 million shares of a legal monopoly since September 30, 2024, indicating a shift in investment strategy. Berkshire Hathaway’s Form 13F filings reveal these changes in Buffett’s portfolio.

Berkshire Hathaway CEO Warren Buffett has been a net seller of stocks for 11 consecutive quarters, with Bank of America being a significant portion of these sales. The selling may be attributed to profit-taking, as Buffett looks to lock in gains with historically low tax rates. However, concerns persist about the underlying reasons for the significant selling activity.

Despite the selling of Bank of America shares, Warren Buffett has been actively buying shares of Sirius XM Holdings, a legal monopoly in the satellite radio industry. Berkshire Hathaway’s stake in Sirius XM has been steadily increasing since September 2024, indicating Buffett’s confidence in the company’s prospects. This move highlights Buffett’s strategic shift towards different investment opportunities.

Sirius XM’s unique position as a legal monopoly in satellite radio, coupled with its revenue mix heavily reliant on subscriptions rather than advertising, makes it an attractive investment for Warren Buffett. The company’s strong capital-return programs, including a high dividend yield and stock repurchases, further add to its appeal. Additionally, Sirius XM stock is currently undervalued, presenting a potential buying opportunity for investors.

For investors considering Sirius XM stock, it’s worth noting that while Warren Buffett has been buying shares of the company, it did not make the list of the 10 best stocks recommended by The Motley Fool Stock Advisor team. Investors should carefully evaluate the potential returns and risks associated with investing in Sirius XM before making a decision.

Read more at Nasdaq: Billionaire Warren Buffett Sold 41% of Berkshire’s Stake in Bank of America and Has Piled Into a Cheap Legal Monopoly in 3 of the Last 4 Quarters