Warren Buffett Has A Whopping 9,000% Gain On His Washington Post Investment

thenews  

Amazon.com CEO Jeff Bezos just spent $250 million purchasing The Washington Post.

You may recall that Warren Buffett's Berkshire Hathaway is the largest and among the longest-tenured shareholders in the Washington Post Company, which owns the paper along with a bunch of other stuff including test prep firm Kaplan.

(Buffett also served 25 years on the Post's board, having spent part of his youth in DC.)

So, what gains has he seen on the investment?

Buffett started accumulating shares in 1973. As of 2004, he owned 1.7 million shares at a cost basis of $11 million, according to 24/7 Wall Street.

According to Berkshire Hathaway's most recent 13-F, he owns the same amount of shares today. That position was valued at $772 million at the end of Q1.

However, the stock has been on a tear, up 55% since the beginning of the year.

In after-hours trading, Washington Post Company is at $598, which values Buffett's 1.7 million shares at $1.01 billion.

Assuming the $11 million cost basis holds, that's a whopping 9,080% return.

Wow.

Meanwhile, the stock is up about 1.5% after hours Monday.

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Mladen Rakic  
Maxwell10:
And here we have some blokes who cry and complain that it's impossible to make a living out of investing in forex... the true difference from a amateur spectating investor and a professional determined investor....

Did you notice one funny thing : in the last 9 years (in which that gain was created) he was not buying those shares any more!

ndsouz1  
Maxwell10:
And here we have some blokes who cry and complain that it's impossible to make a living out of investing in forex... the true difference from a amateur spectating investor and a professional determined investor....

but that's not Forex, its company shares and its not a surprise, most shareholders or share buyers strategy is the same, buy the shares and hold onto them for years if not decades, my dad bought 800 shares of united breweries in 1982 for 10 INR a share, that's about a $16 investment for 800 shares in 1982 and this year 2013 its valued at 800 INR a share that's $12,800 value for those 800 shares, so my dad made 80,000% in 31 years.

The thing with shares, is that its best bought when companies are at infancy, once they are successful and it's share prices have risen, the price enters saturation and then they become like forex.

for example you can't think of buying Google, microsoft or amazon or Facebook shares today and hold them a few decades hoping for k%'s in profit.

Maxwell10  
mr_nims:
but that's not Forex, its company shares and its not a surprise, most shareholders or share buyers strategy is the same, buy the shares and hold onto them for years if not decades, my dad bought 800 shares of united breweries in 1982 for 10 INR a share, that's about a $16 investment for 800 shares in 1982 and this year 2013 its valued at 800 INR a share that's $12,800 value for those 800 shares, so my dad made 80,000% in 31 years.

The thing with shares, is that its best bought when companies are at infancy, once they are successful and it's share prices have risen, the price enters saturation and then they become like forex.

for example you can't think of buying Google, microsoft or amazon or Facebook shares today and hold them a few decades hoping for k%'s in profit.

Yes the plateau effect is always prevalent when dealing with age old companies which is why the only stocks to buy nowadays are penny stocks(if you want them 1000 plus percentage returns}...but me personally I don't do stock investing I was really just mentioning how the average person will never even try to invest at all crying about how everything is a scam these so called experts of fields they never even entered and thus knows absolutely nothing about can't fathom or believe that there are people in the know how who do make a living off the returns of their own investments