Earlier this year Buffett took a small stake (3.2%) in Lee. Shortly before this move, the company emerged from bankruptcy. It's still on the hook for the debt, but at elevated interest rates. Can you see the writing on the wall?

Dying industry. Desperate company. There's a chance it could turn things around. If it does -- and small-town newspapers survive and thrive -- Buffett comes out looking like the value investing genius he's well known for. But, even if the bet turns sour, Buffett still wins. Give these firms another chance at life, collect some interest, watch the stock price bounce (often as a reaction to your involvement) and make a load of cash whether the alleged investment thesis wins out or not.

If you follow the media coverage of Buffett's small-town newspaper activity, however, all you hear about is the investment thesis. Every headline and every lead deals with Buffett's belief that small-town newspapers have a future. It's a feel-good story. It's likely to prompt investors, particularly those in awe of Buffett, to jump into a stock like LEE or maybe something similar like Journal Communications ( JRN).

While it probably makes more sense to not proceed at all, if you do, move forward with caution. You're not Warren Buffett. You cannot walk into a company, buy a few millions shares and then turn the screws by scooping up warrants or handing out a multi-million dollar high-interest loan.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication, the author held no positions in any of the stocks mentioned in this article.

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