The American investor, who will leave his position as CEO of Berkshire Hathaway at the end of the year, moved his chips after selling 39% of his participation in Bank of America.
The mythical American investor Warren Buffettwho will leave his position as CEO of Berkshire Hathaway At the end of the year, he surprised the investors, When carrying out an unexpected commitment to a company that has legal monopoly in USA.
After detaching 39% of their participation in Bank of America, Buffett redirected his interest and moved about US $100 million to buy more than 14.6 million additional actions of Sirius XM Holdings (Siri), the only license satellite radio operator in the North American countryand raised its participation above 35% of the total capital, Bolsamanía reported.
Sirius XM has three factors that attracted the veteran investor and rarely coexist: practically insurmountable entry barriers, recurring income and a ridiculously low assessment.
For their part, experts consider that the title, which today closed at US $23.95 after rising 1.35%, is “undervalued” and what The company has “monopolistic power”.
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Between July of last year, the American mangate got rid of more than 401 million actions of the Bank of America. “It is likely that the maximum type of companies tax rises in the future,” Buffett said at the Board of Shareholders of 2024.
Buffett preferred to part with much of his position in Bank of America, which is very sensitive to interest ratesat a time where Federal Reserve (Fed) of Jerome Powell He began speculating with feat cuts.
“Sirius XM is one of the few companies with pricing power in a competitive sector”explained Sean Williams, an analyst at The Motley Fool.
The company’s income depends by 77.5% by subscribers, against 19% that comes from advertising, which makes it less vulnerable to economic cycles than its rivals, traditional radios. “When the economy is complicated, advertisers cut; listeners not so much,” Williams remarked.
Source: Ambito
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