Buffett Sells 77% of Amazon Stake to Buy New York Times in Final Quarter

Buffett's Final Investment Move Reveals Strategic Shift

In his final quarter as CEO of Berkshire Hathaway, Warren Buffett made a surprising pivot that caught Wall Street's attention. The legendary investor sold 7.7 million Amazon shares, reducing Berkshire's stake by 77% , while simultaneously making a $352 million investment in The New York Times Company, purchasing 5,065,744 shares .

Buffett retired as Berkshire Hathaway's CEO on December 31, 2025 , marking the end of an era for the investment giant. His decision to dramatically reduce Amazon holdings while betting big on traditional media represents a classic Buffett play - focusing on brand strength and consumer loyalty over high-flying tech valuations.

The timing appears strategic. Tech companies have led the market in 2025, driven by the artificial intelligence boom, but these stocks have been surrounded with concerns of stretched valuations and overspending on AI . Amazon's massive capital expenditure plans, including $200 billion in planned 2026 capex , may have concerned the value-focused investor.

Why The New York Times Caught Buffett's Eye

Warren Buffett has long been a fan of brand-name companies that have built consumer trust , and The Times fits this profile perfectly. Established in 1852, The New York Times is known for its influential paper and digital journalism platforms . The company has successfully navigated the digital transformation that has challenged many traditional media companies.

The numbers tell a compelling story. NYT digital subscriptions grew 780,000 year over year to 12.21 million , demonstrating strong consumer demand for quality journalism. NYT stock has risen 52.8% over the past year to $75.50 per share , rewarding investors who recognized the company's digital pivot early.

Berkshire's purchase of more than 5 million shares makes it one of the publisher's top shareholders behind big asset managers Vanguard, BlackRock, and T. Rowe Price . This substantial stake signals serious confidence in the media company's long-term prospects.

A Pattern of Valuation Discipline

Buffett's selling activity extended beyond Amazon. He sold more stocks than he purchased for 13 consecutive quarters leading up to his retirement , also reducing positions in Apple and Bank of America. This pattern reflects his legendary discipline around valuations, even when companies remain fundamentally strong.

Amazon has never been inexpensive by traditional valuation metrics , despite its dominant position in e-commerce and cloud computing. AWS posted about 24% year-over-year revenue growth in the most recent quarter, pushing its annualized revenue run-rate above $140 billion , proving the business remains robust.

The contrast between selling Amazon and buying The Times illustrates Buffett's investment philosophy in action. While Amazon trades at premium multiples justified by growth prospects, The Times offers a modest dividend yield of 1.22% and a market capitalization of $12.26 billion - more reasonable metrics for a value investor.

Looking Ahead Under New Leadership

Wall Street analysts remain optimistic about The Times' prospects. Citigroup has a buy rating on the stock with a price target of $77, while Evercore has an outperform rating with a price target of $75 . The company continues innovating, recently introducing a TikTok-like video feature on the app, allowing users to scroll through videos produced by Times .

As Greg Abel takes the reins at Berkshire Hathaway, Buffett's final investment decisions provide a roadmap for navigating today's complex market environment. The move suggests that even in an AI-driven world, there's still value in companies with strong brands, loyal customers, and reasonable valuations. For investors, the lesson may be that sustainable competitive advantages and prudent capital allocation often matter more than riding the latest technology wave.