Buffett Ups Berkshire's Bet on Struggling Hometown Papers (Update 1)
Still, Buffett is lending his hand to an American institution, in a move that matches his supportive investments into the U.S. banking system at the height of the financial crisis -- and a recent bet on the recovering auto industry.
While Berkshire's investments in preferred shares of financial heavyweights like General Electric (GE) and Goldman Sachs (GS) turned out to be wildly profitable and since have been redeemed by both companies, Buffett will face a challenge in turning Media General around, even after lending his financial support to the company.
Media General's sales have fallen steadily in the past four years and the company hasn't turned a profit since 2007. In that time span, Media General's shares have lost most of their value, falling from over $40 in 2007 to just $3.14 as of Wednesday's close.
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