By: E&P Staff
Investment guru Warren Buffett is reportedly scooping up newspaper stocks, including shares of The New York Times Co.
Bloomberg’s Allen Wan and Leon Lazaroff quoted David Nelson, who runs the hedge fund DC Nelson Asset Management in New York, “I’m hearing from traders that Buffett is looking at newspaper stocks.”
Shares of the New York Times and Gannett rose today because of the rumors, Bloomberg reported.
Buffett’s company Berkshire Hathaway owns the Buffalo (N.Y.) News and a 22% stake in the Washington Post Co.
Industry analyst John Morton told Bloomberg that Buffett could be interested in newspapers’ strong local position and cash flow. “I’d be surprised if Warren is buying newspaper stocks but if he is, it’s because the companies are still very strong cash flow generators with strong local market positions. With these stocks down over the past couple of years, that can make some of these companies attractive.”
Berkshire Hathaway spokeswoman Debbie Bosanek would not “confirm or deny rumors” Bloomberg reported.