Chou Associates Reduces SiriusXM Position as Portfolio Strategy Takes Shape

In a move that reflects broader portfolio management decisions, Chou Associates Management Inc. divested nearly 293,000 shares of SiriusXM during the fourth quarter of 2025, according to SEC filings. The fund, which focuses on value investments across U.S. equity markets, appears to be fine-tuning its holdings as it balances exposure to the satellite radio company against other core positions.

The Numbers Behind the Trade

Chou Associates trimmed its SiriusXM stake by 292,873 shares, with the sales valued at approximately $6.30 million based on average quarterly pricing. By quarter-end, the fund still retained 409,589 shares worth $8.19 million—a significant position that underscores the manager’s continued interest despite the reduction.

The overall value of Chou’s SiriusXM holding declined by $8.16 million during the quarter, though this figure encompasses both the trading activity and fluctuations in share price. At the close of trading on February 12, 2026, SiriusXM shares were priced at $21.70, having fallen 11.6% over the preceding year and trailing the S&P 500’s performance by nearly 25 percentage points.

Chou’s Broader Investment Posture

By December 31, 2025, Chou Associates had pared its SiriusXM exposure to 4.06% of its 13F-reportable assets under management. The fund’s largest holdings tell a clearer story of its investment thesis:

• Berkshire Hathaway (NYSE:BRK-A): $64.91 million, representing 32.2% of AUM
• Alphabet/Google (NASDAQ:GOOGL): $22.72 million, or 11.3% of AUM
• Synchrony Financial (NYSE:SYF): $17.99 million, accounting for 8.9% of AUM
• Stellantis (NYSE:STLA): $15.18 million, or 7.5% of AUM
• Occidental Petroleum (NYSE:OXY): $12.87 million, equaling 6.4% of AUM

The fund’s top holding—Berkshire Hathaway—alone comprises nearly a third of its portfolio, a detail that helps explain the nuance behind the SiriusXM reduction.

Understanding the Strategy

The SiriusXM trade shouldn’t be interpreted as a loss of confidence in the subscription audio provider. Rather, Chou Associates appears to be managing its overall exposure to the company through multiple lenses. Berkshire Hathaway itself maintains an enormous stake in SiriusXM, holding approximately $3 billion worth as of September 30, 2025—representing roughly 35% ownership of the satellite radio operator. By holding both Berkshire stock and SiriusXM directly, Chou effectively maintains considerable consolidated exposure to SiriusXM’s prospects.

This dual-holding arrangement suggests a sophisticated portfolio approach: Chou retains meaningful SiriusXM shares while also gaining indirect exposure through its dominant Berkshire position. The sale of 293,000 shares, when viewed in this context, represents portfolio optimization rather than capitulation.

Why SiriusXM’s Business Model Still Matters

SiriusXM’s subscription-based revenue engine continues to generate robust cash flows. The company produced $1.26 billion in free cash flow during 2025, funding both operational reinvestment and shareholder distributions. The company currently offers a 5.02% dividend yield, attracting income-focused investors who value recurring subscription economics.

The company’s vertically integrated model—combining exclusive content creation with satellite and digital distribution—provides competitive defensibility. SiriusXM serves U.S. consumers directly while maintaining deep partnerships with automakers, embedding its services into new vehicles and securing predictable revenue streams. This model has demonstrated resilience across economic cycles.

What the Filing Reveals About Chou’s Investment Thesis

By maintaining a $8.19 million SiriusXM position even after trimming shares, Chou Associates signals that the company remains part of its long-term investment framework. The fund ended 2025 holding 28 positions totaling $201.55 million in reportable U.S. equity holdings—a relatively concentrated portfolio suggesting conviction in selected opportunities.

The timing of this reduction matters too: it occurred as SiriusXM underperformed broader market indices, potentially allowing Chou to rebalance exposure or deploy capital toward other opportunities while maintaining meaningful SiriusXM participation through both direct shareholding and Berkshire exposure.

The Bottom Line for Investors

Chou Associates’ SiriusXM trade illustrates how sophisticated fund managers navigate complex ownership structures and proxy relationships. The reduction of nearly 300,000 shares, substantial as it may seem in absolute terms, reflects portfolio management rather than fundamental conviction loss. With Chou retaining both direct SiriusXM shares and substantial Berkshire Hathaway exposure—alongside Berkshire’s own massive SiriusXM stake—the fund’s commitment to the satellite radio story remains intact, simply expressed through a recalibrated ownership structure that aligns with broader strategic priorities.