[Buffett talks newspapers in Vanity Fair issue out today]
In an interview with Vanity Fair writer Sarah Ellison, legendary investor Warren Buffett discussed his 20% stake in the Washington Post Co., explaining why the pre-digital newspaper model once fit into his Berkshire Hathaway strategy. An excerpt from her article, available in the issue on newsstands today:
"In newspapers, the basic rule was survival of the fattest, and the trick was to be bigger than the other guy because at that point you had more help-wanted ads, you had more automobiles for sale, you had more people if you lost your dog who might find it if you ran a classified ad. And you got more dominant because to most people -- this kills people in the news business -- the most important news in the newspaper are the ads."
[Updated at 3:51 p.m. ET to add following Elias purchase.]
Another director buys GCI
His investment followed an even larger purchase of last week of 15,000 shares by Director Duncan McFarland, at $15.51 each. Cost: $232,650.
Shares of the Post Co. and Gannett are both recently down 9% from a year ago vs. a 4% gain in the S&P 500 index, according to Google Finance.