Berkshire’s Whim & The Gray Lady

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It has come to pass, a curious event in the grand, swirling chaos of the markets. Berkshire Hathaway, that vast and somewhat inscrutable entity presided over by the legendary Mr. Buffett (though, one suspects, increasingly by shadows and meticulously maintained spreadsheets), has deigned to notice The New York Times. Not with a grand purchase, mind you, but a tentative poke, a fractional investment amounting to, as they say, a mere trifle in the Berkshire coffers – a sum likely lost in the rounding errors of their quarterly accounting. Yet, for The Times, a venerable institution perpetually teetering on the precipice of profitability, it is a matter of some consequence, like a single kopeck bestowed upon a beggar.

Some 5.1 million shares have been acquired, translating to a stake of approximately 3%, a figure that, when viewed against the backdrop of a $12 billion market capitalization, feels less like a strategic maneuver and more like an eccentric whim. One pictures Mr. Buffett, or perhaps one of his appointed lieutenants – the mysterious Mr. Combs or the equally enigmatic Mr. Weschler – idly flipping through a financial report, their gaze landing upon The Times, and uttering, with a shrug, “Purchase a few. For amusement.” The notion of a meticulously calculated investment strategy seems, frankly, a bit much.

The company’s recent performance, however, does offer a sliver of justification. The Gray Lady, as she is known, is not entirely moribund. Digital subscriptions are, predictably, ascending, climbing 13.9% year over year, and digital advertising revenue enjoys a similar, if equally precarious, ascent of 24.9%. Total revenue has swelled to $802 million, a sum large enough to momentarily stave off the specter of bankruptcy. Earnings per share have also risen, a modest 11.2%, a victory celebrated with muted enthusiasm in the boardrooms of 43rd Street.

A Momentum Most Peculiar

The Times, it appears, is adapting. It is, like a weary traveler stumbling upon a hidden spring, embracing the digital wilderness. Management anticipates further growth, projecting a 14-17% increase in digital subscriptions and a robust rise in digital advertising. Such optimism, in these turbulent times, is almost unsettling. One half expects a swarm of locusts to descend upon the newsroom, or for the printing presses to suddenly malfunction, spewing forth pamphlets advocating for the abolition of punctuation.

To Follow or Not To Follow?

And so, the question arises: should investors mimic Berkshire’s curious foray into the world of newsprint and pixels? The Times, after all, possesses certain qualities that might appeal to the discerning investor. It has, despite the relentless onslaught of misinformation and digital ephemera, managed to retain a reputation for, shall we say, credibility. In an age where truth is a slippery eel and facts are readily fabricated, this is no small feat. Furthermore, the company is attempting to transform itself into a purveyor of video content, a bold, if somewhat desperate, attempt to capture the attention of the perpetually distracted masses. Mr. Bardeen, the company’s chief financial officer, speaks of “strong returns” and “impactful video journalism,” but one suspects the true motivation is simply to avoid becoming irrelevant.

However, a word of caution is warranted. Berkshire may have initiated its stake at a more favorable price, back when the stock traded in the fifties. Shares have since surged, climbing more than 35%, a testament to the fickle nature of the market and the enduring power of irrational exuberance. At 35 times earnings and 28 times analysts’ consensus forecast, the stock is not exactly cheap. It is, shall we say, moderately expensive. A prudent investor might be better served by adding the stock to their watchlist, patiently awaiting a more opportune moment to strike.

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Ultimately, the decision rests with the individual investor. But one cannot help but wonder if Berkshire’s foray into The New York Times is not a calculated investment strategy, but rather a whimsical gesture, a fleeting fancy of the financial elite. A small, almost imperceptible tremor in the vast, indifferent machinery of the market. A kopeck tossed to a beggar, and a silent question hanging in the air: what, truly, is the value of a newspaper in the age of algorithms and artificial intelligence?

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2026-02-18 07:32