Shifting Sands: A Portfolio Adjustment

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The market, as always, whispers its subtle revisions. A recent filing reveals that Chou Associates Management Inc. has, with a measured hand, reduced its stake in SiriusXM Holdings Inc. by 292,873 shares during the final quarter of the past year. A sum of $6.30 million, a not inconsiderable figure, represents the value of those shares relinquished, calculated upon the average price prevailing during those months. The fund retains, however, a holding of 409,589 shares, valued at $8.19 million – a diminished, yet still substantial, presence. The overall position, it must be noted, experienced a decline of $8.16 million, a consequence both of trading and the capricious movements of the market itself.

As of December 31st, this adjustment brings Chou Associates’ SiriusXM stake to 4.06% of their total 13F assets under management. A curious detail, perhaps, but the landscape of portfolio holdings is rarely defined by bold strokes alone; it is the delicate shading, the subtle shifts in emphasis, that truly reveal the strategist’s intent.

The fund’s principal holdings, as of that same date, are as follows: Berkshire Hathaway, commanding $64.91 million (32.2% of AUM); Google, at $22.72 million (11.3%); SYF, valued at $17.99 million (8.9%); STLA, with $15.18 million (7.5%); and finally, OXY, at $12.87 million (6.4%). It is a tapestry woven with the threads of established power and, one might observe, a certain conservatism of vision.

Let us briefly consider the subject of this adjustment: SiriusXM. The company’s revenue for the trailing twelve months stands at $8.56 billion, with a net income of $805 million. A dividend yield of 5.02% offers a modest, yet not unattractive, return. The share price, as of February 12th, closed at $21.70. These are the bare bones of the enterprise, but they tell only a fraction of the story.

SiriusXM, in essence, offers a curated stream of audio entertainment – satellite radio, streaming services, podcasts – a modern echo of the traveling troubadours of old. They distribute their wares through satellite and digital platforms, catering to the insatiable appetite of the American consumer for distraction and information. The company targets, quite successfully, those who seek a premium experience, a refuge from the cacophony of the ordinary.

Their strategy is vertically integrated, a careful control of content and distribution. They leverage exclusive programming and cultivate partnerships with the automotive industry, seeking to maintain a strong competitive position. It is a strategy not without its merits, though one wonders if it can truly withstand the relentless tide of technological disruption.

What, then, does this transaction signify? Chou Associates, one suspects, is merely recalibrating its sails, adjusting to the prevailing winds. Even after this sale, they remain a significant holder of SiriusXM shares. Furthermore, Berkshire Hathaway, that venerable institution, remains the cornerstone of their portfolio, representing nearly one-third of their assets. And, as it happens, Berkshire itself holds a substantial stake in SiriusXM – approximately 35% ownership, representing almost $3 billion in value as of September 30th. A curious confluence of interests, wouldn’t you agree?

SiriusXM’s subscription model, it must be said, possesses a certain inherent stability. The company generated $1.26 billion in free cash flow during the past year, a not insignificant sum. They allocate a portion of this to dividends, currently yielding around 5%. Therefore, to interpret this sale as a loss of faith would be, perhaps, a miscalculation. Chou Associates, with its remaining shares and its Berkshire holdings, continues to maintain a considerable interest in the company’s fortunes. It is a cautious, measured approach, a testament to the enduring appeal of prudence in a world obsessed with novelty.

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2026-02-16 20:02