Shares of Washington Post are fading after news that Warren Buffett is retiring from the company’s board.No reason is given in the release, so obviously we can only speculate.
Some will surmise that as Buffett gets older, he’d like to pare back his non-Berkshire commitments.
Our guess though is that squeaky clean Buffett doesn’t want to be involved in the controversial business of private education. Remember, Washington Post is a private education company mainly, via its Kaplan unit.
Regulators have looked into these companies (including Apollo, and Career Education Company) because their students have dismal success rates, and yet they live off of federally backed student loans.
They’re among the most shorted stocks out there, and lately, with attendance declining, they’ve done really well.