Warren Buffett’s 10 New Stock Picks

6. Sirius XM Holdings Inc (NASDAQ:SIRI)

Shares held by Berkshire Hathaway: 112.50 million

Stake Acquired: Q3 2023

Another cash cow that Buffett is fond of is Sirius XM Holdings Inc (NASDAQ:SIRI). At the end of September, Berkshire held around 105 million shares and in a recent Form 4 filing disclosed increasing the position to 112.50 million shares. Berkshire is the largest shareholder of Sirius, with ownership of more than 30% of the company.

Sirius XM Holdings Inc (NASDAQ:SIRI) is a robust business that generates steady revenue from its fairly large subscription base of around 40 million people. So far this year, the company’s shares lost nearly 60% as investors are concerned about the company’s lackluster growth.

Recently, Sirius XM Holdings Inc (NASDAQ:SIRI)’s management announced some updates to their strategic direction, highlighting plans to focus on the core automotive subscriber segment. With most subscribers using the service in their cars and Sirius trial being offered as a default option in vehicles. Sirius XM intends to focus on retention of users in this segment.

Moreover, Sirius XM Holdings Inc (NASDAQ:SIRI) plans to retire a portion of its debt and to buy back stock. It also pays a dividend of $0.27 per share, which gives its stock a forward yield of 4.8%.