![]() ![]() ![]() The Buffalo News played such an important part in Berkshire’s early history, as did others such as The Omaha World Herald. The decision surely wasn’t easy, but it was absolutely necessary.Īs a postscript, it is sad to see the papers go. The Bellman, and Royal County’s Commentator for Reading, etc. Reading Express and Berkshire Independent, 1879-1884. Now that protection must come in the form of parting with a beloved collection of newspapers. Berkshire Weekly News 1872 Reading Observer, Berks Telegraph, and Bucks, Hants, Oxfordshire and Surrey Newspaper 1873-1878 continued as Reading Observer 1878-1924. Sometimes protecting that reputation has meant holding onto a company that others might have sold for a quick profit. Now imagine this happening over and over and over again.īuffett has rightly said that Berkshires reputation must be guarded ferociously. Each bout of necessary layoffs would have come with much negative press (probably from the papers themselves). What would have happened if he allowed them to go on under Berkshires umbrella? As each paper faced closure it would have looked to it’s rich corporate parent for support. With its large array of newspapers Berkshire was in the unenviable position of possessing not one or two textile-like businesses, but over a hundred. Lee Enterprises may salvage something of the papers by digitizing some of the best assets. What once we’re monopolistic franchises that churned out fantastic returns on capital became capital intensive operations with declining revenues and high costs. He ultimately made the decision to shutter the textile operation in 1985. The schools are officially known as Lenox Memorial Middle. Since 1966 it has shared a campus with the towns middle school. ![]() Lenox Memorial High School is a public high school located in Lenox, Massachusetts, United States, founded in 1803. He codified his thinking in a principal that said Berkshire wouldn’t sell a business just because of poor profitability. And that was during at a time when Berkshire had more things to do with it’s capital. Buffett found a compromise position by allowing the operation to continue at subpar rates of return. In the mid 1980s Berkshire’s original textile business textiles faced economic oblivion. Warren Buffett has seen this movie before. “Berkshire was in the unenviable position of possessing not one or two textile-like businesses, but over a hundred.” It was the right move, and not just for financial reasons. Taking one big public hit now is far better for Berkshire’s reputation over the long run. "If somebody is competing against us, we can say we've been in business for 15 years, we have a long track record of treating people well, and we've never pushed for unsustainable growth.Berkshire recently entered into an agreement to sell its newspaper business to Lee enterprises for $140 million. Wilkinson hasn't quite matched Buffett's reputation for a long-term, responsible ownership just yet, but he's already enjoying an edge in negotiations. The fast past of technological change means Wilkinson and his team can't accurately predict whether their purchases will stand the test of time, he said. On the other hand, Berkshire aims to buy businesses that it's confident will still be around in 30 years. In 1987, Berkshire Hathaway had acquired a 12 interest in the investment banking firm of Salomon. In contrast, Tiny only needs to buy a business with a few million dollars in earnings to materially boost its profits. One of the most serious controversies involving Warren Buffett occurred in 1990. ![]() When it comes to acquisitions, Berkshire - which earned $255 billion in revenue last year - is severely limited in what companies it can buy that will meaningfully move the needle on its finances. Wilkinson highlighted some of the differences between Berkshire and Tiny. Account icon An icon in the shape of a person's head and shoulders. ![]()
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