Warren Buffett's Berkshire Hathaway Bought Shares of The New York Times. Should You?

Core Insights - Berkshire Hathaway initiated a 3% stake in The New York Times during Q4, valued at over $350 million, which is approximately 0.1% of Berkshire's overall portfolio [2][3]. Financial Performance - The New York Times reported a 10.4% year-over-year increase in total revenue, reaching $802 million [6]. - Digital-only subscription revenue rose by 13.9% year-over-year, while digital advertising revenue increased by 24.9% [6]. - Adjusted earnings per share grew by 11.2% year-over-year to $0.89 [6]. Future Guidance - For Q1 2026, The New York Times expects digital-only subscription revenue to grow by 14% to 17% year-over-year and digital advertising revenue to increase in the high teens to low twenties [7]. - Management anticipates total advertising revenue to grow at a low double-digit rate year-over-year [7]. Strategic Focus - The New York Times is emphasizing video as a key area for strategic investment, aiming to enhance its presence in video journalism [10]. - The company's reputation as a trusted source may serve as a long-term catalyst, especially as AI-generated content becomes more prevalent [8][9]. Stock Valuation - The New York Times has a market capitalization of over $12 billion, with shares trading at about 35 times earnings and 28 times analysts' consensus forecast for the next 12 months [11][12]. - The stock has increased more than 35% from lower trading levels in Q4, suggesting that the entry point for new investors may not be optimal at this time [11][12].