2 ms·
9% interest! Are you saying that is good or bad? If Buffet is getting interest, at least he is getting money off the table sooner than later. It's less risky th
by danvoell 7y ago
9% interest! Are you saying that is good or bad? If Buffet is getting interest, at least he is getting money off the table sooner than later. It's less risky than taking an equity stake. The loan is for a lot more than the sale. The loan is probably cheaper money than Lee can get elseware while the sale price for Buffet is probably a better sale price than if he just tried to fire sale the assets. Buffett is an infamous "one last puff" investor. While newspapers are heading down a continual decline, there is still some money to be made for a while.
- yes_man 7y agoI think the original comment meant that a 9% interest for a loan is quite steep and might be signaling Buffett's lack of confidence in media as an industry and its ability to generate value in the long term. However in a deal like this 9% might not be unusually high since the article mentions it is mostly being used to "refinance existing debts" so the high interest is probably a premium on that part