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Slim’s Pickings: Don’t Invest Like the Richest Man in the World

You'd be better off avoiding these five Carlos Slim holdings

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The New York Times Co.

Industry: Publishing
$114.6 million
Returns: +47%

Just as Warren Buffett and countless other investors have taken a liking to newspapers in recent years, so has Carlos Slim.

In 2011, the investor raised his stake in The New York Times Co. (NYSE:NYT) to more than 8%. Slim also loaned the company $250 million during the downturn of 2009 and holds a warrant to buy nearly 16 million shares as a result.

So far, NYT’s returns have justified the increased stake. The stock has climbed nearly 50% during the past 12 months, including a market-doubling 12% gain to kick off 2013. The latest push came amid news that company is again planning to put The Boston Globe up for sale — just the latest move to unload assets that aren’t a part of its core business.

Still, the newspaper industry is hardly a promising one as the medium continues to struggle to stay relevant in an increasingly digital age. The New York Times Co. also must deal with a huge pile of debt, along with operating costs that are rising faster than sales.

That rosy picture doesn’t come cheap, at 22 times next year’s earnings.

Article printed from InvestorPlace Media,

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