Sirius XM Holdings (SIRI 0.14%) has had a roller-coaster past. In the years following its initial public offering (IPO), its shares surged in price by nearly 900%. When the dot-com bubble burst, however, they sank well below the IPO price. But then something amazing happened: The business staged a multiyear revival.

How much would a $75 investment during Sirius XM's IPO be worth today? Prepare to be surprised.

Sirius XM's performance has been incredible to watch

Few stocks have histories as varied as Sirius XM. Over the decades, the company has gone from tech darling to bankruptcy candidate, only to force a megamerger with its biggest competitor, the aftermath of which saw the combined company's share price soar. Despite the drama, the company has failed to be a profitable long-term investment.

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After 30 years, an investor who bought in at the IPO, held on, and reinvested all of their dividends, would have seen a $75 initial investment turn into a holding worth just $42 today.

But don't give up on the stock just yet. One famous investor is betting big on a comeback.

In 2023, Warren Buffett's conglomerate picked up shares of the embattled entertainment company. Buffett is currently sitting on a sizable paper loss based on his initial purchase price, but according to his SEC filings, he still owns nearly one-third of the shares outstanding. His conglomerate added to its stake in Sirius XM multiple times in December, suggesting that Buffett and his investment team remain committed to the stock.

It's not hard to see what Buffett and his team like about Sirius XM. Shares are cheap at 8 times earnings. And given its growth estimates for 2025, shares trade at less than 7 times forward earnings. The company's subscriber base is still steadily shrinking for now, but between its cheap valuation and its ample cash flow generation, this looks like a classic value play by the Oracle of Omaha.

Sirius XM hasn't been a great long-term investment thus far, but one of the greatest investors of all time seems to be betting on a comeback.