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May 4, 2009 / Toby Dayton

Oracle of Omaha Offers Opinions On Obvious

The headline is not a critique of Warren Buffett in any way, I simply could not think of a word for newspapers that started with an ‘O’. In any event, Warren Buffett weighed in on the state of daily newspapers this past weekend at the Berkshire Hathaway annual meeting and articulated about as grim an assessment as one could imagine. (Berkshire Hathaway owns the Buffalo News and has a significant position in the Washington Post).

“For most newspapers in the United States, we would not buy them at any price,” Buffett said. “They have the possibility of nearly unending losses. … I do not see anything on the horizon that sees that erosion coming to an end.”

Of course, as any good short seller will tell you, the losses will most definitely end when a company stops operating.