Citi-2 Warren Buffett Stocks to Buy Hand Over Fist in December

Group 1: Berkshire Hathaway and Investment Performance - Berkshire Hathaway has generated significant returns, with stock growth of 4,384,748% from 1965 to 2023, equating to a compound annual gain of 19.8% [2] - The S&P 500 has seen an overall gain of 31,223%, with a compound annual gain of 10.2% including dividends, highlighting Berkshire's outperformance [2] Group 2: Sirius XM Holdings - Berkshire Hathaway has become the largest shareholder of Sirius XM Holdings, which has undergone significant changes, including a reverse stock split to attract institutional interest [4] - Sirius XM's stock has declined over 50% this year due to high debt and a drop in paying subscribers, leading to a lowered revenue outlook [5] - The company aims to grow its subscriber base by 25% from 2023 to reach 50 million and increase free cash flow by 50% to $1.8 billion, which will support debt repayment and share repurchases [7] - Sirius XM's stock trades below 8 times earnings and offers a dividend yield close to 4%, presenting a favorable risk-reward outlook [8] Group 3: Citigroup - Citigroup has been a focus for Berkshire Hathaway, maintaining a nearly 3% stake despite challenges in the banking sector, including recent bank failures and an inverted yield curve [10] - CEO Jane Fraser has made significant changes, including selling off unprofitable international franchises and working on the complex exit of Banamex, which is expected to free up capital [11][12] - Citigroup trades below 80% of tangible book value (TBV), while peers trade closer to 2 times TBV, indicating potential for value appreciation as the bank simplifies its operations [14] - The stock is currently priced around$ 71, with tangible book value close to $90, suggesting a potential stock price of$ 113 based on a 1.25 TBV valuation [15]