Berkshire Hathaway Buys NYT Shares: Buy Now?

Berkshire Hathaway Establishes Position in The New York Times

Renowned investment conglomerate Berkshire Hathaway, led by legendary investor Warren Buffett, disclosed its latest portfolio moves through its recent 13-F filing. Although the company engaged in more divestitures than acquisitions during the fourth quarter, one standout development emerged: the initiation of a fresh investment in The New York Times Company. This new holding, while modest in scale relative to Berkshire’s vast portfolio—comprising just around 0.1% of its total assets—carries considerable significance for The New York Times itself.

Berkshire Hathaway acquired approximately 5.1 million shares of The New York Times Co. over the course of the quarter. At current valuations, this stake exceeds $350 million in worth and equates to roughly a 3% ownership interest in the media enterprise, which boasts a market capitalization surpassing $12 billion. Such a relatively minor allocation within Berkshire’s expansive holdings implies it may not have been a direct decision from Warren Buffett during his final quarter at the helm as CEO. Instead, it could stem from the strategic choices of one of his trusted portfolio managers, such as Todd Combs—who departed the firm in December as part of a larger leadership reorganization—or Ted Weschler.

Regardless of the exact decision-maker, this investment choice stands out as noteworthy and raises a pertinent query for individual investors: Is it wise to emulate Berkshire Hathaway by purchasing shares in The New York Times Company at this juncture?

Impressive Financial Performance Fuels Interest

A close examination of The New York Times Company’s recent financial results reveals compelling reasons why Berkshire Hathaway might have been drawn to this opportunity. The business is demonstrating robust momentum across multiple fronts. In the fourth quarter, revenues from digital-only subscriptions surged by 13.9% compared to the prior year, while digital advertising income jumped an impressive 24.9%. Overall, the company’s total revenues expanded by 10.4% year-over-year, reaching $802 million—a strong testament to its operational strength.

Additionally, adjusted earnings per share for The New York Times climbed 11.2% to $0.89, underscoring the profitability gains amid this revenue growth. These figures highlight a company that is not only expanding its top line but also effectively converting that growth into bottom-line results, a combination that appeals to value-oriented investors like those at Berkshire.

Positive Outlook for Early 2026

The momentum appears set to persist into the new year. Management at The New York Times has provided forward guidance indicating that digital-only subscription revenues should rise between 14% and 17% year-over-year in the first quarter of 2026. Digital advertising is projected to grow even more aggressively, in the high teens to low twenties percentage range. Collectively, total advertising revenues are anticipated to advance at a low double-digit pace compared to the same period last year.

This optimistic forecast reflects confidence in the company’s strategic initiatives and its ability to capitalize on shifting consumer behaviors in media consumption. As more readers shift toward digital platforms, The New York Times is well-positioned to capture a larger share of this expanding market through its subscription model and targeted advertising efforts.

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Strategic Advantages in a Changing Media Landscape

Beyond the immediate financial metrics, several long-term catalysts could have influenced Berkshire’s decision to invest. One key factor is The New York Times’ esteemed reputation as a reliable and authoritative news source, particularly as artificial intelligence-generated content proliferates across the internet. In an era where distinguishing credible journalism from algorithmically produced material becomes increasingly challenging, established brands like The New York Times hold a distinct edge. Their legacy of rigorous reporting and editorial standards provides a moat against the dilution of trust in digital media.

Another promising avenue is the company’s intensifying focus on video content as a core pillar of its news delivery strategy. During the fourth-quarter earnings discussion, Chief Financial Officer Will Bardeen emphasized this priority, stating, “As we’ve discussed, video in particular remains an important area of strategic investment being reflected in our guidance.” He further expressed assurance in achieving substantial returns by expanding the scope and influence of video journalism throughout the organization’s offerings. This pivot aligns with broader industry trends where video consumption is surging, especially among younger demographics, positioning The New York Times to diversify its revenue streams and engage audiences more dynamically.

Valuation Considerations for Potential Investors

Given the evident strength in The New York Times’ operations, one might wonder if now represents an opportune moment to follow Berkshire Hathaway’s lead and invest in the stock. However, a review of the current pricing provides some cautionary notes. Berkshire likely entered its position at more favorable levels, as shares dipped into the $50 range at certain points during the fourth quarter. Since those lows, the stock has appreciated by over 35%, reflecting market enthusiasm for the company’s results.

Today, with the shares changing hands around levels that reflect a price-to-earnings multiple of approximately 35 times trailing earnings, and about 28 times the consensus analyst estimates for the forthcoming 12 months, the valuation sits in a middling territory. It does not appear outrageously overpriced, yet it also lacks the compelling discount that typically attracts deep-value buyers. For many investors, a prudent approach might involve placing The New York Times on a watchlist, monitoring for any pullbacks that could offer a more attractive entry point in the months ahead.

In summary, while Berkshire Hathaway’s new stake signals confidence in The New York Times’ trajectory—bolstered by solid financials, forward guidance, and strategic bets on trust and video—the current share price tempers the urgency to buy immediately. Patient investors may find better opportunities as market dynamics evolve, allowing them to align with the underlying business strengths at a more reasonable cost.