Warren Buffett's Historical Investments (Part 7)

Warren Buffett's Historical Investments (Part 7)

Media General Inc.: Media General is a major newspaper publisher and owner of TV and cable systems. Warren was buying it in 1978 and 1979 for $16 a share, with per share earnings of $3.42 a share, which equates to an initial return of 21%. Again, the Fed's raising interest rates helped make this low price possible. No hard information on when he sold it, but we believe it was 1985, for around $70 a share.

Price bought: $16 a share (in 1978 and 1979)
Earnings: $3.42 a share
Initial return: 21%
Price sold: $70 a share (in 1985)


Mercury General Corp: Mercury is the largest agency writer of passenger auto insurance in California, and California has a lot of cars. It gets great ROE. Buy this one when it is trading close to or below book value, which you could have done in 1988, 1990, 1991, 1992, and 2000. This is a Buffett Foundation holding.


New York Times: The company owns the New York Times, Boston Globe, fifteen smaller dailies, and half the International Herald Tribune. It also owns eight TV and two radio stations. This is a Buffett Foundation holding. In the early nineties the numbers were lousy, but they are starting to look better.


Ogilvy & Mather Int'l. Inc.: This stock is no longer publicly traded. Buffett bought 31% of Ogilvy, the fifth-largest ad agency in America, after the 1973 - 74 stock market crash for approximately $4 a share against earnings of $0.76 a share. No record of when he sold it. By 1978 it was trading at $14 a share, which would have given him an annual compounding rate of return of 30%. By 1985 it was trading at $46 a share, which equates to an annual compounding rate of return of 24%.

Price bought: $4 a share (after 1973-74 stock market crash)
Earnings: $0.76 a share
Price at 1978: $14 a share, giving a CAGR of 30%
Price at 1985: $46 a share, giving a CAGR of 24%


Related topics:
Warren Buffett's Historical Investments (Part 1)
Warren Buffett's Historical Investments (Part 2)
Warren Buffett's Historical Investments (Part 3)
Warren Buffett's Historical Investments (Part 4)
Warren Buffett's Historical Investments (Part 5)
Warren Buffett's Historical Investments (Part 6)
Warren Buffett's Historical Investments (Part 7)
Warren Buffett's Historical Investments (Part 8)
Warren Buffett's Historical Investments (Part 9)