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Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) seems to have found the latest apple of its eye. The trillion-dollar conglomerate has been rapidly accumulating shares of SiriusXM Holdings (NASDAQ: SIRI), the satellite radio company that's considered a monopoly by some investors.
Berkshire now owns 32% of SiriusXM, according to the most recent SEC filings.
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Buffett isn't new to Sirius stock. He first acquired shares of the company in 2016 through the Liberty Media SiriusXM stock, which was recently spun off as Sirius became an independent company again.
Buffett hasn't explained why he likes SiriusXM. But he's long been a fan of media stocks, seeing newspapers as local monopolies in earlier eras, and he owned a hefty share of the Washington Post for decades.
SiriusXM checks those boxes as the only satellite radio company currently operating, and it's a stable business with a solid subscriber base. It currently has a cheap valuation of 8 and a dividend yield of 4.1%, two qualities that Buffett surely appreciates.
However, SiriusXM has struggled to grow, and the stock has been a chronic underperformer over the period of time that Buffett has owned it.
If you're thinking of following Buffett into SiriusXM, there are two other media stocks you're better off considering.
1. The New York Times Company
The New York Times Company (NYSE: NYT), which owns its eponymous newspaper and a handful of smaller media properties like The Athletic and Wordle, seems to have much of what Buffett looks for in a media stock.
The New York Times has a top-notch brand in news, and its reporting sets the news agenda for much of the media, including television. Not only do readers look to the Times for that reason, but because of its prestige, it's able to attract top journalism talent.
The digital era has been a challenging one for newspapers, but the Times has successfully pivoted, and it's built a strong digital subscription business even as the print business continues to decline.
It now has 10.8 million total subscribers, up 10% from a year ago, showing steady growth. Revenue rose 6% to $625.1 million, and it reported adjusted operating margin of 18.3%.
The digital business now makes up a majority of its revenue, and its growth could accelerate as less revenue comes from the print side. With a strong brand, a solid business model, and an established position as the leader in the news industry, The New York Times Co. looks well-positioned for long-term growth.