Warren Buffett Owns Nearly 10% of This Company -- Should You Follow His Lead?

Warren Buffett is known for investing in companies with legal monopolies. That makes VeriSign (NASDAQ: VRSN) a natural fit for Berkshire Hathaway's portfolio, which Buffett oversaw until he stepped down as CEO at the end of last year.

VeriSign operates in the background of the internet, providing registration services for domains such as .com and .net, and Berkshire owns a 9.8% stake in the company -- a position it began building over a decade ago.

Considering VeriSign's firm grip on domain registration and the constant cash flow that it offers, is it worth considering the stock for your personal portfolio?

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The online traffic director

In addition to its domain registration operations, VeriSign oversees two of the world's 13 root servers that help direct internet traffic, creating a large infrastructure moat that isn't easily disrupted. That moat also generates a lot of cash. In 2025, VeriSign reported $1.6 billion in revenue and $826 million in net income, both increases from 2024's totals.

Business has been good for VeriSign, but it is more of a mature operation than one with a roster of significant growth drivers. As some business owners shift from using websites to relying mainly on social media, domain registrations may face a noticeable slowdown.

That's reflected in domain base growth projections. Domain base growth is only expected to increase between 1.5% and 3.5% in 2026, with revenue projected to steadily climb, rather than explode higher.

With those numbers in mind and also considering VeriSign's forward price-to-earnings (P/E) ratio of 27.7, it appears investors may be paying up for the reliable, steady cash flow more than anything else. For comparison, Nvidia has a forward P/E ratio of 21.5. There's nothing wrong with investing in a maturing business, but VeriSign doesn't scream "value" at its current valuation.

There is, however, a Buffett play inside the Berkshire portfolio that does.

Consider this Buffett investment instead

For a Buffett pick at a more attractive valuation, consider Sirius XM Holdings (NASDAQ: SIRI). Berkshire owns around 37% of the company.

Sirius may not be a pure audio monopoly given the intense competition in the streaming market, but it does exhibit monopolistic characteristics. In 2007, there were only two businesses authorized by the Federal Communications Commission to provide satellite radio service in the U.S. before the merger of Sirius Satellite Radio and XM Satellite Radio Holdings formed SiriusXM Holdings.

It's also building a moat through content, offering shows and stations that you can only find on its platform.

Sirius could also be considered a maturing business, but unlike VeriSign and its rich valuation, Sirius has a forward P/E of 7.4. That looks much more like a value. Pair that with a dividend yielding a generous 4.5%, and Sirius starts checking a lot of boxes as a Buffett stock worth owning.

It seems that others are slowly starting to recognize this company's value as well, as the stock price has climbed notably so far in 2026, inching closer to its 52-week high of $24.92.

The upside looks promising, but that has to be considered along with concerns about Sirius to get the full picture. Those concerns include slowing subscriber growth, an increasingly competitive streaming media space, and rising content costs.

Still, between the two companies, Sirius looks like the better value.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and VeriSign. The Motley Fool has a disclosure policy.