SIRI Sirius XM Holdings Inc

I read in the news that Buffett has invested in SIRI Sirius XM Holdings Inc. However, this company doesn't fit the 4 rules criteria explained in the videos.

Can anyone explain the reasoning behind investing in this stock?


  • edited March 3
    You're referring to the rules of current ratio, debt to equity etc?

  • i was wondering the same thing.
  • The simple answer is it's more complicated than just looking through a screener and picking stocks. Many businesses he owns do not follow graham criteria. This is due to the fact that healthy business does not always need a lot of current assets on the books, for instance, at&t doesn't follow that capital structure. They also have a high level of leverage. This is due to the ways businesses in different sectors structure their capital. It isn't fair to say that AT&T is a bad company because they have high leverage. They are actually using their liabilities very effectively.
Sign In or Register to comment.