Is Washington Post Next to Be Ripped?

The Post has more options to create value. Last year, its newspaper and magazine publishing divisions made up a third of the company's revenue and a fifth of its operating profits. Its education division, Kaplan, made up 43% of revenue and 28% of operating profits, while its cable business and broadcasting properties comprised the rest of its portfolio.

In the first half of 2007, education and cable were the only Washington Post divisions that posted revenue growth. Advertising revenue for the whole company declined 9.3%, while print advertising revenue dropped 15% and circulation for the daily and Sunday editions of its flagship newspaper, The Washington Post, fell 2.9%.

If the economics of the traditional publishing business continue to deteriorate while a viable alternative doesn't emerge, Washington Post's exposure to the space could become a touchier subject for shareholders.

However, aside from its dual-class share structure, the company boasts another bulwark against Wall Street's animal spirits that its counterpart in New York is lacking: Berkshire Hathaway.

According to Washington Post's latest proxy statement, the Oracle of Omaha owns a 30.9% stake in the company. He has ceded his voting rights to the company's chairman and CEO, Donald Graham -- son of the late Katharine Graham, who was a close friend and business ally of Buffett's. As a result, Graham and his family control more than 70% of the company's voting rights, with backing from the most respected investor in history.