Amy Gahran writes on E-Media Tidbits (Pointer.org):
"According to Bankstocks.com, on May 6 at the annual Berkshire Hathaway shareholder meeting, famed investor and CEO Warren Buffett offered what sounds like a financial death knell for the newspaper business [...]"
On Bankstocks.com, Matt Stichnoth writes:
The Warren & Charlie Show--2006
"People will always want to be entertained and informed. But people just have two eyeballs, and there are only 24 hours in a day. Fifty or 60 years ago, media for most people consisted of the local movie theater, radio, and the local newspaper. Now people have a variety of ways of being informed faster (if not necessarily better), and have more entertainment options, too [...] Whenever more competitors enter a business, the economics of that business tends to deteriorate [...]"
" The multiples on newspaper stocks are unattractively high. They are not cheap enough to compensate for the companies’ earnings power. Sometimes there's a perception lag between the actual erosion of a business and how that erosion is seen by investors. Certain newspaper executives are going out and investing on other newspapers. I don't see it. It's hard to make money buying a business that's in permanent decline. If anything, the decline is accelerating." [...]
A Grim Outlook ... from Warren Buffett (Wikipedia)