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Sydnee Gatewood
Sydnee Gatewood
Articles (201) 

Warren Buffett Beefs Up Liberty SiriusXM Position

Guru purchases more tracking stock

After adding to his position in April, Warren Buffett (Trades, Portfolio) purchased more Class A and Class C shares of Liberty Sirius XM Group (NASDAQ:LSXMA) (NASDAQ:LSXMK) on May 17.

The Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) CEO purchased 507,742 Class A shares for an average price of $36.67, expanding the holding 3.86%. He also bought 1.8 million Class C shares for an average price of $36.44 per share, increasing the position 6.86%.

Buffett now owns a total of 13.6 million Class A shares and 29.1 million Class C shares. Since second-quarter 2016, he has gained an estimated 11% on his investment in Class A shares and 13% for his Class C shares.

Liberty SiriusXM is a tracking stock, with its main asset being the company’s 67% ownership of satellite radio operator SirusXM (NASDAQ:SIRI). Tracking stock is common stock issued by a parent company that tracks the performance of a certain business without claiming its assets. This type of stock allows investors to invest in a certain portion of a business while the parent company maintains overall control.

In April 2016, Liberty SiriusXM, formerly known as Liberty Media Corp., recapitalized its existing common stock to accommodate the tracking stock structure.

In the restructuring, each issued and outstanding share of Liberty Media’s Class A stock was reclassified and exchanged for one share of Liberty SiriusXM Class A stock, a quarter of a share of Liberty Media Class A stock and one-tenth of a share of Liberty Braves Class A stock (NASDAQ:BATRA).

A similar structure was applied to Class B (NASDAQ:LSXMB) and Class C shares.

Buffett is the company’s largest shareholder among the gurus with 4.07% of its outstanding Class A shares, which represents 0.31% of his total assets managed. He also holds the largest portion of outstanding Class C shares at 8.67%, representing 0.65% of his total assets managed.

Disclosure: I do not own any stocks mentioned in the article.

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About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and an MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneeg

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