October 13, 2025

Should You Forget Sirius XM Holdings (SIRI)? This Stock Has Made Far More Millionaires

Key Points

Sirius XM Holdings faces ongoing competition from streaming giants and changing consumer habits.
Berkshire Hathaway has delivered decades of strong returns, outpacing many stocks — including Sirius XM.
With Warren Buffett’s retirement approaching, Berkshire Hathaway’s strong bench ensures continued success.
10 stocks we like better than Berkshire Hathaway ›

Once upon a time, satellite radio looked like a get-rich-quick scheme. The two predecessors of Sirius XM Holdings (NASDAQ: SIRI) made some people very rich in the second half of the 1990s, as new cars started shipping with satellite-enabled radios.

But Sirius XM’s stock peaked at the turn of the millennium, and longtime shareholders have seen share prices drop 97% from that ancient peak. A million dollars invested in Sirius XM on Feb. 17, 2000, would be worth roughly $32,000 on Oct. 10, 2025. With dividends reinvested along the way, you’d have a total return of $40,850 — still a disastrous result in 25 years and change.

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With a plethora of media-streaming options and nearly ubiquitous access to high-speed internet connections, Sirius XM looks like an unlikely winner these days. I would much rather invest in a proven performer that made more millionaires than Sirius XM ever did — and kept building their wealth for decades. In particular, I’m thinking about Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

A smartphone showing charts of Berkshire Hathaway stock.

Image source: Getty Images.

Sirius XM Holdings is losing its signal

Just for fun, let’s imagine investing $32,000 in Sirius Satellite Radio and another $32,000 in Berkshire Hathaway’s Class B shares at the satellite radio veteran’s peak in February 2000. As expected, the Sirius XM bet would have dropped to approximately $1,000 by now. Berkshire investors, on the other hand, would have nearly half a million dollars in their portfolio:

SIRI data by YCharts

Yeah, I’m hand-picking the worst possible time to buy Sirius XM stock, but the picture doesn’t change much in other long-term spans. Berkshire’s robust insurance operations and brilliant equity investments have generated market-beating annual returns over the last few decades, no matter how you slice them.

Switching channels to Berkshire Hathaway’s proven success

Berkshire is like a mini-index or exchange-traded fund, all in one company. Its operations range from insurance (GEICO) and railroads (BNSF) to clothing (Fruit of the Loom) and batteries (Duracell). I’m sure you’re familiar with these household-name brands.

And that’s just the wholly owned businesses fully under Berkshire Hathaway’s control. Buffett’s company also owns large stock investments in many public companies, putting Berkshire representatives in their boardroom. The largest holdings include Apple (NASDAQ: AAPL) and American Express (NYSE: AXP), which add up to 39.5% of Berkshire’s stock portfolio right now.

If you insist on some Sirius XM exposure, Berkshire will serve that purpose too. It holds a dominant stake in the satellite radio business, at 37.1% of Sirius XM’s shares. Mind you, that’s still a small commitment for Berkshire at 0.9% of its diversified stock portfolio.

Berkshire Hathaway’s stellar stability

If you thought the S&P 500 (SNPINDEX: ^GSPC) was a calm, safe, and stable investment option, Berkshire Hathaway beats the market index in some ways.

The stock has a beta value of 0.7, which means that it tends to be significantly less volatile than the broader market.
For example, the S&P 500 fell 2.7% last Friday, along with identical price drops in index funds like the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Buffett’s empire only fell 1.5% on the same tariff-escalation news.
Berkshire Hathaway’s stock tends to outperform the market in the long run, though it should be said that the index funds can make up the difference with dividend payouts. The total returns are very similar in multi-year periods:

As the buzz surrounding the impending interest rate cut by the Federal Reserve intensifies, a whirlwind of uncertainty grips the financial markets. What seemed like a foregone conclusion merely days ago has been upended, catapulting the potential for heightened volatility in the trading arena.

Riding the Roller Coaster: Market Expectations Swerve

Just a week ago, all bets were on a modest quarter-point rate reduction at the September FOMC meeting. The CME Group's FedWatch Tool indicated an 85% likelihood of this conservative move earlier this month. However, the scenario has drastically shifted, with a 63% probability now assigned to a bolder 50-basis-point cut.

The catalyst behind this abrupt change? None other than Nick Timiraos.

The Enigmatic "Fed Whisperer": Nick Timiraos

A year ago, a Wall Street Journal article authored by Timiraos caught the attention of market watchers, earning him the moniker of the "Fed Whisperer." His foresight into Federal Reserve policy decisions has been uncanny, with his words often holding prophetic weight.

Decoding Timiraos' Signal: A 25 vs. 50 Basis Points Dilemma

In a recent WSJ piece titled "The Fed’s Rate-Cut Dilemma: Start Big or Small?" Timiraos threw a curveball into the interest rate cut equation. While the consensus had settled on a 25-basis-point reduction, Timiraos' article introduced the possibility of a more substantial 50-point move, plunging the market into disarray.

By ambiguously referencing both options in his writing, Timiraos added fuel to the fire of uncertainty. The article's conclusion, leaning slightly towards the 50-basis-point cut, further stirred the pot.

Guidance in Question: The Fed's Forward Communication Strategy

The Federal Reserve traditionally relies on "forward guidance" to prepare the market for impending policy shifts. Providing a roadmap through official statements or trusted commentators like Timiraos is paramount to prevent shockwaves in the financial realm.

However, the fallout from Timiraos' recent article paints a different picture. Rather than clarity, confusion and market jitters have emerged, challenging the very essence of effective communication from the Fed.

The Aftermath: Lingering Uncertainty and Discontent

Analysts and investors alike are grappling with the aftermath of Timiraos' bombshell. The sudden wave of uncertainty has sparked discussions, with some questioning the Fed's mandate in pleasing Wall Street versus prioritizing transparency and guidance.

As market participants brace themselves for the outcome of the Fed's decision, the echo of Timiraos' enigmatic prose reverberates in the halls of finance, leaving a trail of anticipation and bewilderment.

Unraveling the Drama: Powell, Timiraos, and the Market Turbulence Unraveling the Drama: Powell, Timiraos, and the Market Turbulence

VOO Total Return Level data by YCharts

Berkshire Hathaway’s bench is as strong as its balance sheet

If there ever was a great time to start a Berkshire Hathaway investment, this might be it. Check out the total returns of the last 6 months:

BRK.B Total Return Level data by YCharts

The tiny peak in early May was Berkshire Hathaway’s all-time high. It was also the last market day before Warren Buffett announced his retirement. The S&P 500 has soared since then while Berkshire investors missed the rally — the pending exit of a legendary leader weighs heavily on the stock.

But I have full confidence in incoming Berkshire Hathaway CEO Greg Abel and his fully intact team of executives, analysts, and portfolio managers. I can’t imagine a better investing mentor than Warren Buffett, and Abel has served by his side for decades. Abel and others have executed many of Berkshire’s investments in recent years, so it’s really just an upgraded title. Not much should change in terms of business operations.

And you can pick up Berkshire Hathaway shares at a discount while the market worries about this humble speed bump.

Berkshire has made lots of millionaires over the decades while Sirius XM’s wealth-building era was long ago and temporary. As with any rock-solid investment vehicle, adding money over time to a Berkshire Hathaway position could build a million-dollar portfolio for you, too.

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American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.