Early Roots: Delivering Newspapers
Warren Buffett was really happy when he bought The Washington Post because it was like going back to something he knew and loved from his past. When he was young, he used to deliver newspapers for both The Washington Post and The Washington Star. This job gave him the start he needed to eventually make smart investments.
What made this job so meaningful to him? Well, he wasn't just an ordinary newspaper delivery kid; he was a clever one. He didn't spend all the money he earned from delivering newspapers. Instead, he saved it up to use as the first bit of money for his future investments.
You know what's interesting? When Warren Buffett bought shares in The Washington Post, The Washington Star newspaper had already become a part of The Washington Post. So, with just one investment, he became the owner of his two most-loved newspaper companies.
Media Enthusiast: Beyond Profits
This purchase also shows us that Warren Buffett really liked the idea of investing in media news stuff. It wasn't just about getting money in the future; he was more excited about making even more money down the road.
Plus, Warren Buffett had a special attachment to newspapers. He had lots of friends who were journalists, and they had real friendships. He even said once, "If I didn't go into finance, I could have been a great journalist."
The Washington Post's Prosperity Under Buffett's Wing
Actually, this inspired Warren Buffett to buy a bunch of local newspapers. He wanted to create a big collection of news articles and even dreamed of starting his own news platform someday.
When he bought The Washington Post and those other papers, it wasn't just about making money later. He was excited about the chance to earn even more profits down the line.
And you know what? His $10 million investment turned into a whopping $200 million after the deal was done. That's a really big success!
When Warren Buffett was young, he worked really hard delivering newspapers. He even became friends with Katharine, who was in charge of The Washington Post, and helped when the company went public. This made him believe that The Washington Post had a bright future.
Then, in 1986, he left The Washington Post's board because a company he admired, Capital Cities Communications, led by Tom Murphy, bought the American Broadcast Company (ABC). Warren Buffett became a big shareholder of ABC and joined its board too. But he couldn't be on the boards of both companies at the same time because that's against the law in the U.S.
Enduring Bond and a Return to the Board
In fact, Warren Buffett was the head of The Washington Post for a long time, 11 years to be exact. He was super committed and didn't miss a single meeting, even when there were strikes by workers in the 1970s. He was always there to support Katherine, who was in charge.
And you know what? After Disney bought ABC, Warren Buffett came back to The Washington Post's board because of their strong emotional connection. He played a big part in making the company's stock worth more than $400 million later on.
From the initial purchase of The Washington Post in 1973 to becoming its largest shareholder and chairman, Warren Buffett considered his investment in The Washington Post the most meaningful of his lifetime.