Warren Buffett Has Bought $78 Billion Worth of His Favorite Stock in 7 Years -- but He Currently Prefers Shares of This Legal Monopoly Instead

Core Insights - Warren Buffett has not purchased shares of his favorite stock for at least 13 months, while increasing his stake in Sirius XM Holdings to 37.1% [1][10][15] - Berkshire Hathaway's Class A shares have appreciated nearly 5,940,000% over 60 years, significantly outperforming the S&P 500's 44,000% increase [2] - Buffett's investment strategy focuses on companies with sustainable competitive advantages, which Sirius XM possesses as a legal monopoly in satellite radio [16] Company Overview - Sirius XM Holdings is a satellite-radio operator that has become a focal point for Buffett, who has added over 5 million shares recently, bringing Berkshire's total to approximately 124.8 million shares [15] - The company holds a unique position in the market, being the sole holder of satellite-radio licenses, which provides it with pricing power that traditional radio providers lack [16] Financial Performance - Sirius XM generates a significant portion of its revenue from subscriptions (76.8%) compared to traditional radio operators, which rely heavily on advertising [18] - The company's predictable cost structure contributes to stable operating cash flow, making it less susceptible to economic downturns [19] - Sirius XM's forward price-to-earnings (P/E) ratio is notably low at 7.6, especially in the context of the S&P 500's high valuation levels [20]