Photo credit: www.cbsnews.com
Warren Buffett is not known for frequently participating in interviews, but his bond with the late Katharine Graham, the pioneering publisher of the Washington Post, is noteworthy. “If there’s a narrative that deserves telling, it is certainly her own,” Buffett remarked. “For any young girl, that story would be transformational, altering self-perception.”
Buffett described Graham as a unique individual who faced immense pressure in her role. “She was scared of taking on the job,” he noted, highlighting her internal struggle. “Despite knowing she possessed the capability, societal expectations had instilled doubts in her mind. She had been led to believe that women were not suited for leadership roles—her own mother repeatedly suggested, ‘No one wants to hear what you have to say.’ Yet, thrust into the limelight, she was confronted with a male-dominated board awaiting her decisions, solely desiring her to manage the finances rather than lead the company.”
Graham stepped into her role after the tragic suicide of her husband, Philip Graham, and navigated through some of the most significant events of her time. Her tenure included the monumental choice to publish the Pentagon Papers, a decision that played a crucial role in the Vietnam War’s conclusion. Additionally, Graham underscored the importance of investigative journalism during the Watergate scandal, which ultimately led to President Nixon’s resignation.
Despite these achievements, Buffett emphasized that Graham had internalized the belief that “only men can thrive in business.” She once articulated, “The most substantial obstacle women face is one they impose upon themselves; if you grow up viewing yourself as inferior, you tend to diminish your own worth.”
A new documentary, “Becoming Katharine Graham,” now available for streaming on Amazon Prime, explores Graham’s transformation from a traditional housewife to the first female CEO of a Fortune 500 company.
The foundation of her friendship with Buffett was laid on June 4, 1973, when he reached out to her following his acquisition of a notable amount of stock in the Washington Post Company. “I informed her, ‘I’ll not acquire another share unless you give your personal approval,’ and we formalized our agreement. That’s when our friendship blossomed.”
Recalling those early days, Graham reflected on Buffett’s presence at board meetings: “He would come equipped with numerous annual reports and guide me through them. It was akin to attending a business education session with Warren Buffett.”
On why he chose to invest in the Washington Post, Buffett explained, “It was an extraordinary opportunity. The valuation was substantially undervalued—worth at least $500 million but trading for only $100 million.”
Don Graham, Katharine Graham’s son and a former publisher of the Post, remarked that Buffett represented the best thing that could happen to his mother in business. Buffett himself noted, “She was in need of reassurance.”
When asked about how he supported her confidence, Buffett shared, “I would tell her that when she looked in the mirror, it was akin to a funhouse mirror distorted by how men perceived her. My role was to help her see a clearer reflection. She understood that I was on her team, and I held her in great esteem. Yet, she often subjected herself to unnecessary pressure.”
The documentary also reveals the extent of President Nixon’s antagonism towards Graham, featuring an unsettling White House tape with conversations involving Nixon and FBI Director J. Edgar Hoover. In this exchange, Nixon disparaged Graham, reflecting the pervasive misogyny of the time.
Despite this, Buffett noted that Graham was undeterred by Nixon’s threats. Instead, her fears were focused on the potential loss of her newspaper. This anxiety came to a head during a 1975 strike that devastated the Post’s operations, a period Buffett reflected upon as one of Graham’s most trying moments.
“The challenges during that time were immense,” Buffett stated. “It took a significant toll on her emotionally, perhaps more than during Watergate or the Pentagon Papers. She feared she might lose everything she had worked for.”
Buffett emphasized that Graham’s courage led to a remarkable increase in the Washington Post Company’s stock value, surging more than 3,000 percent during her time as publisher. Moreover, she influenced Buffett in unexpected ways, humorously reminding him that a steady diet of fast food and sugary drinks might not be ideal for his health. However, Buffett quipped, “She didn’t manage to convert me!” He added, “My tastes remain unchanged from my childhood—hot dogs, hamburgers, and ice cream are still my favorites.” At one dinner at her home, Buffett humorously recalled a lobster incident, nimbly illustrating the friendship’s ease and competence.
Graham passed away in 2001, a loss that prompted Buffett to serve as an usher at her funeral.
As for Warren Buffett, the esteemed investor continues to make headlines at the age of 94, still holding the position of chairman at Berkshire Hathaway and maintaining a presence in financial discourse. When probed about the current economic landscape, he opted for discretion, saying, “It’s a fascinating topic, but I’m not at liberty to discuss it openly.” He did, however, express his views on tariffs, implying they are somewhat akin to acts of warfare, and noting their inevitable economic repercussions as a tax on goods.
When asked about the impact of tariffs on inflation, he chuckled, stating, “In the long run, they are simply a tax on goods. The Tooth Fairy isn’t covering these costs!” He underlined the necessity of always asking “and then what?” in economic discussions.
While Buffett sidestepped pressing topics related to contemporary political developments, he affirmed his unwavering faith in American enterprises, declaring, “The bulk of my managed funds will invariably be within the United States.” His reasoning? “It’s the best place!” he shared, concluding with a warm chuckle, “I was fortunate to have been born here.”
Source
www.cbsnews.com