Billionaire investor Warren Buffett announced that he will retire from the board of the Washington Post Co. when his term ends in May. The 80-year-old is not saying why he’s stepping down, but he has been preparing his investment firm, Berkshire Hathaway — the publishing company’s largest shareholder — for his eventual departure. He stepped down from the board of Coca-Cola in 2006.
Some analysts speculated that while his decision not to seek re-election could be because of his age, it also could be over the controversy surrounding Kaplan University, the Post’s embattled education unit that is being investigated by the federal government.
“Warren Buffett prizes his reputation above anything else, and I think the last thing he wants to do is be involved with a company that’s increasingly drawing the ire of regulators,” said Joe Weisenthal, deputy editor of Business Insider, a Web site that analyzes business news.
The Department of Education proposed strict regulations in November after a federal probe of for-profits discovered low graduation rates, misleading recruitment practices, and in some cases, encouragement to forge federal aid applications to qualify for Pell Grants. For-profits received $24 billion in federal loans and grants last year.
Last month, a former Kaplan dean said in a federal trial that Kaplan executives ran “multiple schemes” that defrauded $1 billion from taxpayers.
Kaplan has consistently denied the allegations.
Melinda Gates, wife of billionaire Bill Gates, resigned from the Washington Post’s board late last year.
Buffett has served on the board since 1974, except for an eight-year break to dedicate time to another venture.
“I’ve loved The Washington Post since I delivered almost 500,000 copies of it as a youth in Washington,” Buffett said. “That love for the product, the company and the management continues unabated today. I will always be available to help management in an way they request. It’s been a great 37 years.”
Weisenthal, who has covered Buffett for several years, said the investor probably did not have an ethical dilemma about Kaplan, which also has been accused of manipulating veterans. “The practices aren’t new, but the scrutiny is,” he said.
Political analyst Chuck Thies said he suspected Buffett was just slowing down with age.
“It may just be the beginning of semiretirement,” Thies said. “I really don’t know, but I’m going to sell my Washington Post stock right now.”
Berkshire Hathaway owns about 24 percent of the Washington Post’s Class B stock.
Shares of the company, which announced a dividend Thursday, rose to $433.25 on the New York Stock Exchange Thursday, 2.33 percent above Wednesday’s close, after slipping at midday.
Buffett also serves as a trustee for Grinnell College and the Bill & Melinda Gates Foundation, and is the director of Citigroup Global Market Holdings and MidAmerican Energy Holdings Co. He is also the chairman of Borsheim Jewelry Co. Inc.
