Berkshire Weekend: Buffett on Investing in Newspapers
Liz Claman of Fox Business Channel quotes or paraphrases the Berkshire chairman and vice chairman:
Question: At what price does it become compelling to invest in newspaper business or is there no price in today’s environment?
Buffett: The current environment is accentuating problem in newspapers -but it’s not the basic cause. Charlie and I read 5 a day. We’ll never give them up. We would not buy them at any price. They have the possibility of going to unending losses. They were essential to the public 20 years ago. Their pricing power was essential with customer. They lost the essential nature. The erosion has accelerated dramatically. They were only essential to advertiser as long as essential to reader. No one liked buying ads in the paper - it’s just that they worked. I don’t see anything on the horizon that causes that erosion to end.
Munger: It’s really a national tragedy. As they disappear - I think what replaces them won’t be as desirable as what we’re losing.