When Berkshire Hathaway (NYSE:BRK.B) makes a move, a lot of investors take a look in that direction. And this time, the move was toward SiriusXM (NASDAQ:SIRI). Rather, the move was toward Liberty Sirius tracking stock, and it was a big move indeed. Berkshire Hathaway investors, meanwhile, were marginally happy about this, and sent shares up fractionally in Thursday afternoon’s trading.
Berkshire Hathaway shelled out around $85 million to pick up 2.8 million shares of the tracking stock in question, noted a recent Securities and Exchange Commission (SEC) filing. Earlier this month, Berkshire Hathaway made an identical purchase of 2.8 million shares. Reports suggest that Berkshire’s plan here is to take advantage of large-scale discounts that the tracking stock represents against its holding in SiriusXM Holdings itself. Thanks to this purchase, Berkshire holds a combined total of 69 million shares of the tracking stock, or about 20% of the whole.
Berkshire’s Buying Spree Continues Elsewhere
Sirius XM tracking stock isn’t the only thing that Berkshire bought big on, reports noted. Berkshire also completely bought out Pilot Travel Centers by picking up the last outstanding 20% of its shares back on Tuesday. It bought the other 80% for a combined total of $11 billion, reports note, so it was likely less than that.
The move was, at times, acrimonious—both Berkshire and Pilot accused each other of financial manipulation while the deal was going on—but it ultimately came to pass, suggesting that Warren Buffett doesn’t look for robots to drive trucks completely any time soon.
Is It Worth Buying Berkshire Hathaway?
Turning to Wall Street, the lone analyst covering BRK.B stock has a Buy rating. After a 18.12% rally in its share price over the past year, the BRK.B price target of $410 per share implies 13.59% upside potential.
