After 40 Years, Warren Buffett Is Selling This Long-Time Investment

Warren Buffett is said to be selling his shares in Graham Holdings, former owner of the "Washington Post." Plus, understanding corporate health care and the value of a diploma!

Feb 13, 2014 at 8:00PM

Enjoy these three reads to satisfy your Foolish curiosities in investing, business, and life!

40 years and 12.3% annual returns later, Buffett says "Sell!!"


Last year, CEO Jeff Bezos made headlines, and sent shock waves through the publishing world, when he purchased The Washington Post. Bezos did not buy the other units owned by Graham Holdings (NYSE:GHC), the current entity that formerly owned The Post, including the company's cash cow, education company Kaplan.

Warren Buffett and Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), the largest shareholders of Graham Holdings, have now decided to divest from the new company. Reported by Fortune, Buffett is negotiating a deal to trade his shares of Graham for shares of Berkshire owned by Graham.

Apparently, The Oracle of Omaha sees greater upside for Berkshire's future than Graham's without The Post:

According to a late Wednesday filing on the SEC's website, Berkshire and Graham Holdings are negotiating a stock swap that would involve Berkshire handing its 1.7 million shares of Graham Holdings back to the company. In return, Buffett's company would get the Berkshire shares that Graham Holdings owns, currently held in part through the Graham Holdings pension plan.

But that wouldn't be the end of the deal. Berkshire holds considerably more Graham Holdings shares then Graham owns of Berkshire. According to the filing, Berkshire may end up acquiring a division of Graham Holdings to make up the difference. 

And to boot, the deal is structured to be tax free!

How large corporations provide employee health care without actually buying any insurance


This week, AOL (NYSE:AOL) CEO Tim Armstrong made headlines after blaming rising health-care costs for the company's decision to reduce and withhold retirement matches on employee 401k contributions. Armstrong, amid a flurry of criticism, quickly changed course and apologized. 

Perhaps more interesting, though, is this dive by Stephen Gandel into the little known logistical and financial world that large companies use to provide these health-care benefits. Like so many other things in the corporate world, it turns out that employee health-care benefits are a numbers puzzle that swings between costs, risk, and benefits.

What that means is that AOL didn't actually purchase any insurance to cover the health costs of 95% of its employees.

As odd as that sounds, AOL has plenty of company. These days, health insurance consultants regularly tell companies with over 500 employees not to buy health insurance. It's a waste of money. Instead, collect the payments that your employees would have paid an insurer. Then hire a big health insurance company to handle the paperwork. Voila, it looks like you are providing your employees health insurance, but you haven't purchased any coverage.

In terms of wages, a college diploma is the new high school diploma
Are you or someone you know thinking about skipping college after finishing up high school courses this spring? That could be a very bad idea according to new data reported by The New York Times.

According to the report, the wage benefits of a college degree are at an all-time high while, at the same time, the value in terms of wages for a high school diploma are rapidly decreasing.

The Pew report found that the wage premium for having a college degree was at a record high. The median annual wage for young college-educated workers now is $45,500, compared to $28,000 for high school graduates -- a gap of $17,500. In 1965, the gap was much smaller: $7,400. (All the figures are in 2012 dollars.)

Click through to the story above to see a chart that dramatically captures the trend.

Warren Buffett turned $11 million into $1.1 BILLION with his Washington Post investment. Here's how you can do the same
Warren Buffett has made billions through his investing, and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

Jay Jenkins has no position in any stocks mentioned. The Motley Fool recommends and Berkshire Hathaway. The Motley Fool owns shares of and Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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