Berkshire Hathaway has disclosed a new investment in the New York Times, signalling a return to the media sector after Warren Buffett divested from newspapers in 2020. In a filing with the U.S. Securities and Exchange Commission, Berkshire revealed it held approximately 5.07 million New York Times shares, valued at $351.7 million, as of the end of 2023. News of the investment prompted a 4% increase in the Times’ share price in after-hours trading, reaching $76.99. The New York Times is a global news organisation dedicated to enhancing society by creating, collecting, and distributing high-quality news and information. Berkshire Hathaway is a conglomerate holding company with a diverse range of businesses, from insurance to manufacturing.
The investment in the New York Times was part of a series of portfolio adjustments made by Berkshire during the fourth quarter. The company reduced its stake in Apple by 4%, although the iPhone maker remains its largest equity holding, valued at $62 billion. A more significant reduction occurred in Berkshire’s position in Amazon, with the firm selling 77% of its 10 million shares in the online retailer. These changes come as Greg Abel succeeded Warren Buffett as chief executive officer on January 1, marking the end of Buffett’s 60-year leadership. Buffett remains chairman of the company.
Berkshire’s recent filing also indicated activity in other stocks. The company increased its holdings in Chevron and Chubb, while reducing its positions in Aon and Bank of America. Previously, Buffett had voiced concerns about the sustainability of most newspapers, noting in 2018 that only the New York Times, Wall Street Journal and Washington Post possessed strong digital models capable of offsetting declines in print revenue. Berkshire had sold its newspaper business to Lee Enterprises in 2020 for $140 million. More details on Berkshire’s investment decisions are anticipated in the company’s upcoming annual report.
It remains unclear whether Buffett, Abel, or portfolio manager Ted Weschler directed the New York Times investment. The company has not yet named a replacement for Buffett as chief investment officer, nor has it specified how equity investment responsibilities will be allocated moving forward. Investors often view Berkshire’s stock picks as an endorsement from Buffett, and stock prices often increase when the firm reveals new positions. The long-term impact of the leadership change on Berkshire’s investment strategy and market influence remains to be seen.
