Warren Buffett Likes Newspaper Stocks -- Should You?

That old coot in Omaha is buying newspapers, after swearing a few years back he wouldn't. For Berkshire Hathaway (BRK.A) (BRK.B) holders, this is at worst a small diversion, given the amounts involved, and at best a reminder that Warren Buffett can find the gems in a pile of junk.

But don't try this at home. No-one advertises in newspapers anymore, and digital advertising doesn’t pay the bills. Rupert Murdoch's News Corp. (NWS) is finally sending its papers off to a separate company, and young readers are used to getting news for free.

The New York Times' David Carr offers one more warning: news companies have majorly underfunded pension plans. Gannett’s (GCI) pension is $942 million underfunded. McClatchy’s (MNI) is $383 million short. The New York Times’ (NYT) is $522 million.

If you’re still holding onto these stocks, consider donating to a non-profit news organization like ProPublica instead. At least you’ll get a tax deduction.

MNI Chart

MNI data by YCharts

From the editors of YCharts.YCharts Pro Investor Service includes professional stock charts, stock ratings and portfolio strategies.

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}

Please note that this feature is only available as an add-on to YCharts subscriptions.


Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.