Learning Curve at Washington Post

Using Morningstar's discount cash-flow model, Walden values the company's stock at $1,000.

Currently, it's trading at around $738, a 35% discount.

Meanwhile, Walden is inclined to give The Post a premium due to the strong influence over management from its largest shareholder and director, the legendary investor Warren Buffett.

The Oracle of Omaha's investment vehicle, Berkshire Hathaway (BRK.A Quote), bought a stake in The Post in the 1970s, and the subsequent success of the investment became a major pillar of Berkshire's portfolio.

"Buffett has a huge influence on the Washington Post," says Walden. "The management there uses a lot of Buffett's principles."

For instance, Washington Post was expensing stock options on its income statement long before accounting standards required it.

Also, most companies would employ a stock-split at the high price levels of Washington Post shares, but Buffett has long contended that raising the number of shares outstanding and lowering the price of a stock with a split only encourages the sort of short-term, speculative investing practices that he is careful to avoid.

Taking the long-term view, Walden says the market conditions for newspapers is likely to improve over time as media outlets adjust to the technological transformations that are currently wreaking havoc in the industry.

The Washington Post is one organization that should be particularly resilient.

"Given its unique position as the newspaper of record for the political scene in the nation's capital, The Washington Post is unlikely to lose its audience or its relevance," explains Walden.