Have you ever been to an insanely good restaurant where one dish was so good you kept asking the waiter for more?

That’s basically what Warren Buffett is doing with Sirius XM right now. He got a taste, liked what he saw, and went back for seconds… and thirds.

Buffett just loaded up on another 2.3 million shares of Sirius XM, bringing Berkshire Hathaway’s total stake to over 800 million shares. That’s roughly $2.75 billion worth of stock, making up over 33% of the entire company (at this point, he’s basically Sirius XM’s CEO).

And yet, Wall Street is treating this stock like last week’s gas station sushi… downgrade after downgrade, lowball price targets, and zero excitement to round out the dish. But what if Buffett sees something they don’t?

Sirius XM has been beaten down, ignored, and left for dead, but historically, that’s exactly the kind of setup Buffett loves. Here’s why he keeps doubling down… and why you might want to pay attention before this underdog story gets its Hallmark Movie ending.

You ever go to the grocery store and see your favorite organic thin mints on sale for half off (when they’re normally $6 a box?) That’s Sirius XM right now. (Side note: I bought 4 boxes.)

This stock is trading at a forward earnings multiple of just 7.6… the kind of discount you’d expect from a company on life support, not one throwing off nearly $1.2 billion in free cash flow. Oh, and let’s talk about that beautiful 5% dividend yield. That’s higher than your bank’s savings rate, and last I checked, my checking account isn’t paying me to hold my money. Buffett loves cash-generating, recession-resistant businesses, and Sirius XM checks all the boxes. With 76% of revenue coming from subscriptions, people keep paying even when the economy’s in the gutter. It’s not some flashy tech rocket ship, but you’re not paying for growth. You’re paying for stability, cash flow, and an absolute steal of a valuation.

Look, Buffett doesn’t just YOLO into stocks because he’s bored. If he’s adding to a position twice in one quarter, he sees something worth betting on. Berkshire Hathaway has held Sirius XM for years, even when it had the chance to cash out for a quick win. Instead, Buffett doubled down in both October and December, buying more shares as they dropped lower. If Buffett (who can buy literally anything) keeps buying Sirius XM, maybe it’s time to pay attention.

Beyond that, Sirius XM just posted an earnings beat on both revenue and profit, with EPS rising 24% year-over-year… its best bottom-line beat in over a year. But Wall Street is throwing shade.

Here’s what they’re missing: Subscriber losses are slowing down. Yeah, Sirius lost some subs last year, but the decline is tapering off. Revenue decline is decelerating. Management is guiding for $8.5 billion in revenue for 2025, only a slight dip from last year. Free cash flow is up big. They’re projecting a 13% jump in free cash flow, which means more money for buybacks and dividends.

Sirius XM still has 33 million paying subscribers and a digital empire in the making with Pandora. And let’s not forget… people are being dragged back into the office. More commuting means more in-car listening, and Sirius XM dominates that space.

Sirius XM isn’t some high-flying growth stock that’s gonna 10x overnight. But if you like Buffett-approved value plays with fat dividends and steady cash flow, this might be one of the most overlooked buy-and-hold plays on the market. Wall Street may not be paying attention, but Buffett sure is. The only question is, who do you trust more?

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Stocks.News has a position in Sirius XM mentioned in article.