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The Buffalo Evening News was established in 1880, and for years was operated by a single family, the Butlers. After Kate Robinson Butler died in 1974, the establishment-oriented Republican-leaning newspaper was put up for sale by her estate. It wasn't until the first Saturday after New Year's Day, 1977, that Buffett and Munger arrived in Weston, Connecticut, to talk to Vincent Manno, a newspaper broker who was handling the deal. Buffett first offered $30 million for the paper, but his price was refused. He then raised the bid to $32 million. The offer was high, considering that the Evening News had earned only $1.7 million pretax in 1976. However, the offer again was rejected. Buffett and Munger excused themselves to confer. They returned with a price written on a sheet of yellow legal paper. The amount, $32.5 million, was accepted. It was a daring move, since the acquisition price represented nearly 25 percent of the net worth of Berkshire Hathaway at that time.
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Janet Lowe (Damn Right!: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger)