4 Reasons Jeff Bezos Bought The Washington Post

That’s the question everyone’s asking today. Why did Jeff Bezos, the CEO of Amazon, purchase the Washington Post for $250 million yesterday? Sure, the Washington Post has been a reputable American daily newspaper since the late 1800’s. But the print newspaper industry is a dying breed, and the Washington Post is slowly dying with it.

Jeff bought the Washington Post at just around its book value ($256 million)The book value is literally what the Washington Post’s financial books say they own. It’s the perceived value of their assets. Paying that price means that he believes those assets aren’t necessarily going down in value. Does Jeff Bezos see something that perhaps the rest of us are missing?

Warren Buffett, famed investor and long time holder of Washington Post (WPO) stock, has claimed Jeff Bezos is the “best CEO in the United States“. And let us be clear: it is not Amazon that purchased Washington Post, but Jeff Bezos himself. Although, $250 million is pocket change to the 19th richest man in the world..

So what’s the plan? Does Bezos have something up his sleeve?

Let us speculate:

1) Maybe he’s just being Jeff Bezos: This isn’t a very uncharacteristic move of his. Bezos is known for his rather risky personal investments. He’s invested in startups like Airbnb, Uber, Behance and Everfi. He’s also founded Blue Origin, a private aerospace company with the goal of lowering the cost of spaceflight.

2) Maybe he’s a believer in Warren Buffett’s theory on newspapers. In Warren Buffet’s 2012 Letter to Berkshire Hathaway shareholders, he talks a lot about his investments in local, small-town USA newspapers. He believes that the print newspaper will live on as a means for local news. The Washington Post not only serves a wide audience nationally, but also owns several smaller newspapers throughout the country. There’s also the idea of the abundance of news reporting the internet has spawned. On Twitter and Facebook, everyone’s a journalist. But with that quantity comes a decrease in quality. Perhaps Buffett and Bezos envision a newspaper renaissance, where quality reporting becomes important again. There’s an undertone of those thoughts in Bezos’ letter to Washington Post employees.

3) Maybe he saw an opportunity to snag a huge content creating machine. The Washington Post has been around since 1877, and therefore has a massive archive of content. Their still running strong, churning out tons of content in both print and web-based form. These days, content is king. Everyone, including Amazon, is fighting for the rights to media content. The Washington Post has a lot of that, and for a relatively cheap price tag.

4) Maybe he just wants to see what happens: As we’ve already covered, Jeff Bezos is very rich. He’s also very patient. Amazon has spent many years working at a loss in order to build an infrastructure where they can lead the world in selling things. It’s not so easy to set up distribution channels where you can ship items in 1 day to anyone…anywhere. But Jeff had the patience to set that up. Perhaps he doesn’t have a plan yet. But clearly, the world is changing in how it consumes its media content. Perhaps during this shift, a plan of what to do with the Washington Post will forge itself. If and when that happens, the 19th richest man in the world just might move even further up the list.

*** SPECIAL ALERT — July 25, 2020 — TWO of this Year’s Motley Fool Stock Picks Have Already Tripled and Two have Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, July 24th 2 of their 12 2020 stocks picks have already tripled (TSLA, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

2 responses to “4 Reasons Jeff Bezos Bought The Washington Post”

  1. […] promise I had this pick in mind before Jeff Bezos bought the Washington Post and dominated news cycle. I’m an unabashed fan of Amazon, and own it in my Wall Street Survivor […]

  2. […] continue to add value to their shareholders (read: me) and I’m increasingly interested in how Jeff Bezos will integrate the Washington Post and their team of journalists into AMZN’s […]

Leave a Reply

Your email address will not be published. Required fields are marked *