Why Warren Buffett keeps buying newspapers

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Buffett, in a letter to Berkshire shareholders:

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. We do not believe that success will come from cutting either the news content or frequency of publication. Indeed, skimpy news coverage will almost certainly lead to skimpy readership. And the less-than-daily publication that is now being tried in some large towns or cities – while it may improve profits in the short term – seems certain to diminish the papers’ relevance over time. Our goal is to keep our papers loaded with content of interest to our readers and to be paid appropriately by those who find us useful, whether the product they view is in their hands or on the Internet.

While the big national papers struggle, Buffett has been buying up the community publications which have been leveraging their near-monopolies on local news to try new strategies that will let them remain viable and relevant for at least the next few years.

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