Why Buffett Bet on The New York Times

The 93-year-old Oracle of Omaha just made another head-turning move. Berkshire Hathaway bought shares in The New York Times while continuing to trim its massive Apple position. Why is Warren Buffett betting on ink and pixels over silicon chips?

The Numbers Tell the Story

Berkshire's latest 13F filing reveals the conglomerate purchased approximately $100 million worth of New York Times stock in Q4. Meanwhile, it sold another 25% of its Apple holdings, further reducing what was once its largest position.

Apple still represents over 40% of Berkshire's equity portfolio, but that's down from more than 50% at the end of 2022. The steady trimming suggests Buffett sees better value elsewhere – including in what many consider a dying industry: newspapers.

The Media Resurrection Play

The New York Times isn't your grandfather's newspaper company anymore. While print circulation declined, digital subscribers have surged past 10 million. The company has diversified beyond news with hits like NYT Cooking and the viral word game Wordle, which it acquired for an undisclosed sum.

This transformation likely caught Buffett's attention. The Times has built what he loves most: a economic moat. Loyal subscribers pay $17 per month for digital access, creating predictable recurring revenue that traditional advertising models never provided.

Apple's Expensive Problem

Buffett's Apple trimming isn't necessarily a vote of no confidence – it's likely about valuation. Apple shares have surged 400% since 2020, pushing the stock's price-to-earnings ratio to around 30 times – expensive by Buffett's standards.

The iPhone maker also faces headwinds: slowing growth in China, increased regulatory scrutiny, and the challenge of staying relevant in the AI revolution where competitors like Microsoft and Google appear to have early advantages.

"We still think Apple is a wonderful business," Buffett has said, "but we also think the stock got ahead of itself."

The Contrarian's Edge

This move exemplifies classic Buffett strategy: buy what others are selling. While investors chase AI stocks and crypto plays, he's backing a 150-year-old newspaper that figured out how to thrive in the digital age.

The Times trades at roughly 25 times earnings – not cheap, but reasonable for a company growing digital revenue at double-digit rates. More importantly, it owns something increasingly rare: trusted brand equity in an era of information chaos.

What Wall Street Is Missing

Many analysts focus on declining newspaper readership, but they're missing the bigger picture. The Times isn't just a newspaper – it's a lifestyle brand. Subscribers don't just read the news; they cook its recipes, play its games, and trust its recommendations.

This ecosystem approach mirrors successful tech companies, but with one advantage: The Times has been building reader loyalty for generations, not quarters.