Where Will Sirius XM Stock Be in 5 Years?

One of the bigger stories of the past year has been Warren Buffett's continued sales of a number of key holdings. His firm, Berkshire Hathaway, has been a net seller of equities this year, leading to a record cash reserve of $325 billion. However, there is one company Buffett seems to like: Sirius XM (NASDAQ: SIRI). Berkshire just bought another $60 million worth of the stock, and it now controls over 33% of the company.The audio entertainment company, which owns both the satellite radio platform Sirius XM and the music streaming service Pandora, is an interesting choice for Buffett. Its stock is down more than 50% year to date. Is now a good time to buy, or will this turn out to be one of Buffett's few misses?Warren Buffett is a big proponent of investing in businesses with a "moat" -- that is, some sort of inherent competitive advantage that helps shield the company from competition. Sirius has a monopoly on satellite radio --  that's a pretty strong moat. Anyone trying to seriously compete would have to spend an enormous amount of money building out the infrastructure to provide the service and then win market share.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool