The Motley Fool analyzes SiriusXM’s 20-year stock performance against the S&P 500, revealing disappointing returns for long-term investors. For instance, $75 invested at the IPO is now worth only $42, highlighting the stock’s struggles. However, contrasting this bleak outlook, Warren Buffet’s investment firm bought shares as of 2023, indicating potential value at 8 times earnings. This situation raises curiosity about Buffet's confidence, suggesting that there might be reasons for optimism in SiriusXM's future despite its historical performance trends.
Shares are cheap at 8 times earnings, the article points out.
After 30 years, an investor who bought in at the IPO, held on, and reinvested all of their dividends, would have seen a $75 initial investment turn into a holding worth just $42 today.
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