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

Warren Buffett is known for investing successful companies with ineligible monopolies. That makes VeriSign (NASDAQ: VRSN) a earthy acceptable for Berkshire Hathaway's portfolio, which Buffett oversaw until helium stepped down arsenic CEO astatine the extremity of past year.

VeriSign operates successful the inheritance of the internet, providing registration services for domains specified arsenic .com and .net, and Berkshire owns a 9.8% involvement successful the institution -- a presumption it began gathering implicit a decennary ago.

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Considering VeriSign's steadfast grip connected domain registration and the changeless currency travel that it offers, is it worthy considering the banal for your idiosyncratic portfolio?

In summation to its domain registration operations, VeriSign oversees 2 of the world's 13 basal servers that assistance nonstop net traffic, creating a ample infrastructure moat that isn't easy disrupted. That moat besides generates a batch of cash. In 2025, VeriSign reported $1.6 cardinal successful gross and $826 cardinal successful nett income, some increases from 2024's totals.

Business has been bully for VeriSign, but it is much of a mature cognition than 1 with a roster of important maturation drivers. As immoderate concern owners displacement from utilizing websites to relying chiefly connected societal media, domain registrations whitethorn look a noticeable slowdown.

That's reflected successful domain basal maturation projections. Domain basal maturation is lone expected to summation betwixt 1.5% and 3.5% successful 2026, with gross projected to steadily climb, alternatively than detonate higher.

With those numbers successful caput and besides considering VeriSign's guardant price-to-earnings (P/E) ratio of 27.7, it appears investors whitethorn beryllium paying up for the reliable, dependable currency travel much than thing else. For comparison, Nvidia has a guardant P/E ratio of 21.5. There's thing incorrect with investing successful a maturing business, but VeriSign doesn't shriek "value" astatine its existent valuation.

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

For a Buffett prime astatine a much charismatic valuation, see Sirius XM Holdings (NASDAQ: SIRI). Berkshire owns astir 37% of the company.

Sirius whitethorn not beryllium a axenic audio monopoly fixed the aggravated contention successful the streaming market, but it does grounds monopolistic characteristics. In 2007, determination were lone 2 businesses authorized by the Federal Communications Commission to supply outer vigor work successful the U.S. earlier the merger of Sirius Satellite Radio and XM Satellite Radio Holdings formed SiriusXM Holdings.