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.
People like me whom do just about everything on the internet, have not seen a newspaper in person for more than a decade. Sure the newspaper is great, but with the internet and everytime you get on your computer, there are ads everywhere about current events, sports, financial markets, etc. So why would I takt the time to burn gas, and spend money on a newspaper? It just doe not add up consideral all I just said.
May 5, 2009 at 12:41 am
aboutthis blog
Liz Claman joined FOX Business Network (FBN) as an anchor in October 2007. Her debut included an exclusive interview with Berkshire Hathaway CEO and legendary investor Warren Buffett.
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Michael
People like me whom do just about everything on the internet, have not seen a newspaper in person for more than a decade. Sure the newspaper is great, but with the internet and everytime you get on your computer, there are ads everywhere about current events, sports, financial markets, etc. So why would I takt the time to burn gas, and spend money on a newspaper? It just doe not add up consideral all I just said.