In the previous article, we learned how Buffett and Munger made Blue Chip Printing and Berkshire Hathaway merge to create a brighter future for Blue Chip. In this article, let's continue learning in this chapter of Warren Buffett Story how Buffett and Munger continue to find excellent companies in the business market!

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If you've read our previous articles, you must be familiar with Buffett's experience of delivering newspapers as a student, which left a lasting impression on him and drew him towards the newspaper industry.

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Unnoticed Investment Success

We all know that in the beginning, Buffett was really good at investing, and he and his partners were able to make more money than most other investors for many years. But strangely, not many people noticed this, even after he became a big owner of Berkshire Hathaway.

It wasn't until 1973 when he became a major owner of The Washington Post, a famous newspaper, that everyone started paying attention to him.

Buffett is known for gradually buying shares of The Boston Globe and The Washington Post, and this is considered a great example of smart investing.

He once said that owning a fancy newspaper is like having a toll booth on a busy road – everyone who passes has to pay a fee.

So, back in 1972, he decided to get into the newspaper business, and in 1973, he quietly started buying shares of The Boston Globe and The Washington Post in the stock market.

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Overcoming Market Skepticism

Before all of this happened, Warren Buffett had done a lot of homework and looked into the newspaper business very carefully. He was pretty sure that newspapers would be a good business in the future. But here's the thing: at that time, most other investors didn't think newspapers were a good bet. That's one of the reasons why Warren Buffett is so unique.

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Now, when Buffett decided to invest in these newspapers, the people who owned them got a bit worried. They thought he might want to take control and run the show. But Buffett didn't want to scare them off, so he took a slow and friendly approach. He talked to them and made them feel comfortable, and it worked. He eventually made successful investments in those newspapers.

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Understanding The Washington Post's History

Let's go back in time and learn about the story of The Washington Post.

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It all started in 1877 when this newspaper was created, but things got really tough for it in 1933, and it was almost bankrupt. That's when Eugene Meyer, who was Katharine Graham's dad, bought it for over $800,000.

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But honestly, the newspaper was in a bad spot. It was losing money, not many people were reading it, and it had lots of problems. But Eugene worked really hard for ten years, and he managed to turn things around. The newspaper started doing better.

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After Eugene, Katharine's husband, Philip Graham, took over, and he made the newspaper even more popular and made more money from it.

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Then, something very sad happened in 1963. Philip got very sick with a mental illness and took his own life. So, Katharine decided to run The Washington Post herself, even though it was a tough job.

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As the years went by, in 1971, The Post published some important secret papers about the Vietnam War. Then, from 1972 to 1974, it uncovered a big scandal called Watergate that got everyone talking. The newspaper became super famous in the United States.

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Katharine Graham was really brave. She didn't give in to pressure from politicians and kept investigating things with her reporters. She even played a big part in making the U.S. President at the time, Nixon, step down from his job.

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Imagine working for such an interesting company when you were young! Warren Buffett couldn't resist being curious about it. So, he started watching and planning.

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Watch out for the next Warren Buffett Story!

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In this story, we found out some cool stuff about The Washington Post's past. Now, let's think about how to find out if a company is really valuable and has a bright future. Get ready for the next story – it's going to be super interesting!

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Learning from other people’s experiences is key. For a limited time, you can access a FREE investing masterclass to take your investing to the NEXT LEVEL!

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READ: 5 Must-Read Books for Investing: A Beginner’s Guide