Buffett says if you buy into a bad business get out of it. It is much easier to manage a good business than a bad business.That is a lesson that Buffett has learned from the transaction.
Buffett talks about Ben Graham. Buffett quoted Graham as saying that it is better to buy a company at a cheap price. Buffett disagrees and thinks it is better to buy a great company at a fair price. It took him 20 years to figure this out.
Later in the interview, Buffett says that he gets proposals every day to check out new possible investments. He will decline to invest if the business is too tough even if the managers are good.
Buffett thinks the Newspaper business is dead. He says that there is a clear difference between the Newspaper business in 1970 than in 2010. But for now Buffett is holding on even if newspapers are no longer a great business.
Video is below:
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