Buffet pessimistic about the future of newspapers

Berkshire Hathway Chairman and CEO Warren Buffet, speaking at the company's 2006 shareholders' meeting, weighed in on the future of newspapers, saying the outlook isn't good. Much of that is due to the fact that, according to Buffet, "newspaper readers are heading into the cemetery, while newspaper non-readers are just getting out of college. The old virtuous circle, where big readership draws a lot of ads, which in turn draw more readers, has broken down."

Buffet added that "Charlie" (Berkshire Hathaway Vice Chairman Charlie Munger) "and I
think newspapers are indispensable. I read four a day. He reads five. We couldn’t live without them. But a lot of people can now. This used to be the ultimate bulletproof franchise. It’s not anymore."

Thanks to PJNet Today for the tip and for posting the link to a longer excerpt from the meeting at Hypergene MediaBlog.