On banking business

  Buffett: Banking, if you can just stay away from following the fads and making bad loans, has been a remarkably good business. Since WW II, ROE for banks that have stayed out of trouble has been good. Some large well-run banks earn 20% ROE. I’ve been surprised that margins in banking haven’t been competed […]

Buffett on Railroad Industry

[Q: What are your views on the railroad industry?] I don’t think the railroad industry will be a lot more exciting, but the competitive position of the railroads has improved somewhat since 20 years ago. There’s been progress on labor issues and an improved competitive position vis-a-vis truckers. Higher oil prices hurt railroads, but hurt […]

Buffett on Newspaper Industry

[Q – Are you still down on newspapers? Ipad and other e-reading technologies – will it end up with contraction in earnings retained by content provider or by distributor?] WB: When money at newspapers came from advertising – it was on average about 75%, they used to be only game in town, and what a […]