Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. BRK-B initiated a position in Sirius XM according to a new Securities and Exchange Commission filing last week.

Berkshire Hathaway closed out the year with , shares of Sirius XM.

Yes, Warren Buffett is now an investor in a stock that attracted mostly penny-stock speculators in the past. It's a smart move for Berkshire Hathaway, and obviously it validates Sirius XM's success story.

Should You Buy Sirius XM Stock in ? | InvestorPlace

Let's take a look at some of the reasons why arguably the greatest investor of our time is finally buying into the top dog in satellite radio. Buffett may or may not be a fan of Howard Stern. He may not even be one of Sirius XM's However, the one thing that Buffett knows is the value of a big business that generates an even bigger amount of cash.

Sirius XM is a money machine. It's not fair to call Sirius XM speculative these days. Sirius XM has been consistently profitable for years. Buffett loves steady and predictable businesses, and that's exactly what Sirius XM has become.

The scalable model is a well-oiled machine, and net income has grown faster than revenue in five of the past six years. Antitrust regulators may have approved the combination of Sirius and XM nine years ago, but it's essentially a monopoly when it comes to satellite radio.

There is certainly no shortage of competitors in the realm of audio entertainment, and the birth of the connected car has cracked open the marketplace for streaming apps.

However, Sirius XM is the undisputed champ of premium radio.

Sirius XM offers seamless coast-to-coast access to premium content for drivers, and the competition isn't even close. Buffett loves market leaders that own their niche, and that's Sirius XM with its healthy moat. Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway B shares. The Motley Fool has a disclosure policy.

Rick has been writing for Motley Fool since where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time with more than 20, bylines over those 22 years.

Why You Might Want to Buy Some Pandora Stock Right Now

He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception.

He earned his BBA and MBA from the University of Miami, and he splits his time living in Miami, Florida and Celebration, Florida.

Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks.

Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.

Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep?

Helping the World Invest — Better. How to Invest Learn How to Invest.

Sirius-sdz (Sascha Duensing) | DeviantArt

Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Feb 20, at Sirius XM Radio NASDAQ: Berkshire Hathaway A shares NYSE: Berkshire Hathaway B shares NYSE: Prev 1 2 3 4 Next.

Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.