That’s not true, it’s about risk-adjusted returns. What Buffet presumably believes is that a 9% loan has a better reward/risk ratio than the newspaper business.

That’s not true, it’s about risk-adjusted returns. What Buffet presumably believes is that a 9% loan has a better reward/risk ratio than the newspaper business. As long as a return is greater than the borrowing rate, you csn synthetically make any return you want. This is why risk is important, because leverage is going to multiply it as well.