New bottle, old wine. Well, rightly so!
Not very long before, in the year 2009, had Warren Buffett ruled out Newsprint as junk investment business citing newsprint as a dying business model and increasing substitution from internet.
Come 2012, Buffett's Berkshire decided to buy The Media General papers. To summarize what Mr. Buffett had stated - "In towns and cities where there is a strong sense of community, there is no more important institution than the local paper"
So what turned the 'boring' newsprint business into a 'glamorous' investment?
However pervasive internet may become, the local aspect of newspaper remains even in the highly developed United States. So what different is India from the US when it comes to the 'stickiness' factor of the newsprint. More-over, India is all the more divided by languages, religions and castes; thus giving an apt breeding ground for the 'localized' news content. I still believe that under this light we should re-look at our regional newsprint companies and hunt for a bargain investment!!!
Please find the link below:
