Warren Buffett says Berkshire Hathaway “has paid cheap enough prices for the newspapers it has purchased that he expects them to deliver 10 percent returns every year, but he also expects newspaper earnings to continue declining,” an unbylined AP report says. Berkshire’s annual meeting was held this past weekend.
Jonathan Stempel writes that, regarding stocks, Buffett “continues to shy away from sectors such as media, where he cannot reasonably predict who will thrive in the long run.”
“It’s a lot easier for me to predict that ketchup will be doing well or Coca-Cola will be doing well in 10 years,” Buffett said, referring to Berkshire’s pending takeover with Brazilian investment firm 3G Capital of H.J. Heinz, and Berkshire’s large investment in Coca-Cola stock.
Buffett owns 27 daily newspapers and 269 publications overall. His most recent purchase was the Tulsa World, in February.
— Ariel Hsing (@ArielHsing) May 5, 2013