Another reason Why I like Warren Buffett
Mr. Buffett is viewed as a great and wise man for his comments and what he has done with Berkshire Hathaway (BRK). And rightly so. Recently BRK bought the Santa Fe railroad for $26.5 billion and Lubrizol for close to $9 billion, largely using cash on hand for both. It has been said that any possible acquisition would have to be in excess of $5 billion to catch the attention of Mr. Buffett.
Mr. Buffett has also been quoted as saying the business model for newspapers in this country is flawed. “Imagine that someone came along saying, ‘I have a great idea: Let’s chop trees down, buy expensive printing presses, and buy a fleet of delivery trucks, all to get pieces of paper to people to read about what happened yesterday.’”
On 11/30/11 BRK bought his hometown ( Omaha Nebraska) paper for $200 million. This acquisition both in price and any possible profit will hardy matter to BRK which had $136 billion in revenue and $13 billion in profit in 2010. Whatever “spin” BRK needs to put on the acquisition because they are a publicly traded corporation is fine by me.
The truth is he bought the hometown paper to save it from going under. And I like him for that. We have all seen business in our community fail and we may have bought them to prevent that were we rich ( at least I would have).
Happy New Year Mr. Buffett and everyone, and Mr. Buffett, please consider moving to Petaluma, California.