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

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

ROB WILE AUG. 5, 2013, 5:24 PM 5,951 2

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Berkshire Hathaway Chairman Warren Buffett reacts at a newspaper throwing competition before the company’s annual meeting in Omaha, May 4, 2013.

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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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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