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2013 ANNUAL REPORT | 9
3
3
3
No writing about this Company would be com-
plete without a few words about our pension
fund. (NOTE TO SHAREHOLDERS: You should
actually read this section—you won’t under-
stand our 2014 earnings fully unless you do.)
Because Katharine Graham, then CEO of The
Washington Post Company, took some excel-
lent pension-investing advice from Warren
Buett in the late 1970s, our pension fund is
now more than $1.2 billion overfunded. (This,
after we transferred more than $300 million in
pension assets to Je Bezos to fund the pen-
sions for active Washington Post employees.)
The rate of growth in our pension assets was
so great that we will be booking an estimated
$65 million “pension credit” as part of our 2014
earnings. It is good for a company to have a
well-funded pension plan.
But the “pension credit” is not only noncash, but
completely meaningless. Shareholders should
ignore it (even though it makes our earnings look
better) in considering the value of our Company.
Going forward, we’ll be taking advantage
of our strong financial position to help the
Company grow. We can invest by buying com-
panies, repurchasing our own stock when
prices make it appropriate or buying stock
in other companies. (At the end of 2013, our
Berkshire Hathaway stake was worth more
than $400 million.)
We are completely open to purchasing busi-
nesses in unrelated fields if we can understand
them; if they have a demonstrated record of
profitability; and if they come with strong man-
agers who want to stay with the businesses
and run them after the sale. We’ll be a far bet-
ter home for such companies than financial
firms that must flip them to new buyers in a
few years. We want to see our new businesses
grow along with our Company.
Donald E. Graham
Chairman of the Board and
Chief Executive Ocer
February 21, 2014
GOING FORWARD, WE’LL BE TAKING ADVANTAGE OF OUR STRONG FINANCIAL
POSITION TO HELP THE COMPANY GROW. WE CAN INVEST BY BUYING COMPANIES,
REPURCHASING OUR OWN STOCK WHEN PRICES MAKE IT APPROPRIATE OR BUY-
ING STOCK IN OTHER COMPANIES.