“Charlie and I believe that papers delivering comprehensive and reliable information to tightly-bound communities and having a sensible Internet strategy will remain viable for a long time. “
Warren Buffett explaining why his investment company Berkshire Hathaway has spent $344 million buying 28 newspapers in the last 15 months.
American commentators are seeing it as a vote confidence, according to this piece in USA Today.
But before you rush out and bet the house on his strategy, it’s worth remembering he said “tightly-bound communities”, by which I believe he means local newspapers. The all-things-to-all-men national or state-wide brands may not be seeing as large a vote of confidence from Mr Buffett.
In that regard, they may do well to remember another one of Buffett’s pearls of wisdom:
“Only when the tide goes out do you discover who’s been swimming naked”