Q: Hi Team,
Apparently Berkshire owns a large stake in Sirius XM. The company seems to be in the doldrums so is there any reason that you can see why Berkshire would own such a large stake in this company? Is it the same approach they are taking with Ulta where they see an undervalued company that they believe has a high chance of turning things around?
Any thoughts would be appreciated.
Thanks,
Jon
Apparently Berkshire owns a large stake in Sirius XM. The company seems to be in the doldrums so is there any reason that you can see why Berkshire would own such a large stake in this company? Is it the same approach they are taking with Ulta where they see an undervalued company that they believe has a high chance of turning things around?
Any thoughts would be appreciated.
Thanks,
Jon
5i Research Answer:
Yes; BRK.B likes value stocks and stocks with moats. However, we tend to disagree on this one. There is lots of competition and the offering is not overly impressive. There is lots of pressure on costs as well.