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If Warren Buffett is betting on the newspaper industry, so should everyone else

Even with the bad news this week that daily newspapers in New Orleans, Mobile, Birmingham and Huntsville all will reduce their publications to three days a week, there was more good news out of the Warren Buffet camp.

Buffett says his company is likely to buy more newspapers in the next few years, and Berkshire Hathaway will not try to influence the editorial policies of any of them.

Buffett wrote a memo this week to the editors and publishers of all of Berkshire’s daily newspapers. That group is about to get significantly larger because Berkshire announced last week that it plans to buy 63 newspapers from Media General Inc. for $142 million.

The letter was posted online Thursday by the Omaha World-Herald, which is a Berkshire newspaper.

My view is that Buffett rarely makes poor business decisions, particularly on this scale.

So, if Buffett is betting on the newspaper business, so should most others.

About Ross Reily

Ross Reily is editor of the Mississippi Business Journal. He is a husband to an amazing wife, dad to 3 crazy kids and 2 dogs. He is also a fan of the Delta State Fighting Okra and the Boston Red Sox.

One comment

  1. Becky Gillette

    The decision by these major dailies to go to publishing three times a week could really shoot them in the foot. If people get out of the habit of reading the paper each morning, they may just drop their subscription all together. Or maybe they could just sell their papers to Warren Buffett!

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