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Torstar suspends dividend


StubbleJumper
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  • 1 month later...

I think if you bought a whole newspaper, the prices were so cheap that you could draw enough value out of the melting ice cube to make it worth your while.  Berkshire itself was a terrible business (textiles) but bought so cheaply that you take the cashflows and reinvest them anywhere else and still do okay.

 

I think if someone invested in a newspaper with the idea of management turning it around or (god forbid) reinvesting in the newspaper business and growing it, then it would be a dangerous idea.  But is this a worse idea than buying houses in Detroit for $5000 and and renting them for $400 a month?  In both cases you are buying something for way below replacement costs, which has almost zero chance of appreciating, but milking it for the cashflows that you can use for bigger, better things.

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