Greg Abel is only three weeks into his tenure as CEO of Berkshire Hathaway (NYSE:BRK-A | BRK-A Price Prediction)(NYSE:BRK-B) and he is already making moves, filing a notice that the company may sell its entire stake in Kraft Heinz (NASDAQ:KHC), which represents about 27.5% of the company’s shares. That seems an entirely reasonable decision as Kraft Heinz will be splitting into two distinct companies — a move neither Buffett nor Abel supported — and since it was no longer going to be a scaled, integrated food powerhouse, selling the stock is warranted.
Yet there is another stock Berkshire Hathaway owns a significant stake in that, although it is not undergoing a significant transformation, still might warrant being sold: Sirius XM Holdings (NASDAQ:SIRI).
Buffett’s Path to Owning Sirius XM
Warren Buffett first entered the Sirius XM position in the second quarter of 2016 by purchasing shares of Liberty Media‘s tracking stock for Sirius XM, attracted by its deep valuation discount compared to the actual Sirius XM common stock and the company’s position as a virtual legal monopoly in satellite radio. The tracking stock provided indirect exposure to Sirius XM’s operations without direct ownership.
That changed in 2024 when the tracking stock converted to Sirius XM common stock as part of a transaction that combined Liberty Media’s interest with Sirius XM, including a 1-for-10 reverse stock split that adjusted share counts and prices. Following the conversion, Berkshire Hathaway continued building its position, making multiple purchases over the past two years. These included additions in the fourth quarter of 2024, February 2025, and August 2025, bringing its total to approximately 124.8 million shares, or about 37.1% of Sirius XM’s outstanding shares.
Why Keep Sirius XM in the Portfolio?
Several factors support holding onto Sirius XM. Its monopoly status in satellite radio provides a competitive edge, with limited direct rivals in that specific medium. The subscription-based model generates predictable cash flows, as most revenue comes from recurring payments by listeners. Additionally, the stock offers a dividend currently yielding around 5.3%, providing Berkshire Hathaway with approximately $135 million in annual payments based on its holdings and the $1.08 per share annual dividend.
These elements align with Buffett’s preference for businesses with durable advantages and steady income, as well as his long-held mantra that the best time to sell a stock is never.
An Even Stronger Case for Dumping the Shares
Despite those positives, valid — arguably better — reasons exist for selling. While Sirius XM holds a monopoly in satellite radio, it still faces substantial competition from streaming services like Spotify (NYSE:SPOT) and even Alphabet‘s (NASDAQ:GOOG)(NASDAQ:GOOGL) YouTube, which offer on-demand content and broader accessibility.
Sirius’s subscription model has also suffered a modest decline in subscribers, dropping from about 34 million in 2023 to 33 million by the end of the third quarter of 2025. It saw a 303,000-subscriber plunge in Q1, followed by losses of 68,000 and 40,000 in the second and third quarters, respectively. This decline stems notably from reduced auto sales, as Sirius XM relies heavily on trial subscriptions in new vehicles to convert buyers into paying customers.
Furthermore, although the dividend generates income, the $135 million is small relative to what Berkshire Hathaway receives from other holdings. Sirius XM’s total return since 2016 has been a loss of 38%, even with dividends reinvested. In contrast, over the last 10 years, the S&P 500 has returned 302% with dividends reinvested. Buffett could have generated far more for Berkshire Hathaway by simply buying the market.
Key Takeaway
Berkshire Hathaway owns more than 37% of Sirius XM stock, and though Buffett has held onto stocks that have underperformed before — and many expect Abel to largely follow Buffett’s investment philosophy, at least in the short term — Sirius XM is a stock that could, and arguably should, be sold next.
Top Gaining Stocks
Top Losing Stocks