New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Guru News and Commentaries
Guru News, Stock picks and commentaries
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Comment for Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices -- GuruFocus.com
Posted by: pachyderm (IP Logged)
Date: May 18, 2012 01:26AM

Warren Buffet and Charlie Munger reject the use of EBITDA as being a nonsense meaure. At this years BRK shareholders meeting Charlie Munger described EBITDA as something like (can't recall his exact words) "earnings before subtracting all the important things". As the porfolio is named after these two investing greats it surely would be better to use some other measure of actual earnings or earnings before tax rather than the EBITDA measure they both reject.


Stocks Discussed: HAE,
Rate this post:

Rating: 2.7/5 (3 votes)



Re: Comment for Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices -- GuruFocus.com
Posted by: gurufocus (IP Logged)
Date: May 18, 2012 05:12AM

Buffett and Munger rejects EBITDA to measure real earnings power, which we totally agree. But we are not using EBITDA for valuations here. We only use it measure the predictability of the business. Anything like eps, ebit are subjective to more accounting manipulation.


Stocks Discussed: HAE,
Rate this post:

Rating: 3.0/5 (4 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide