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Comment for Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices -- GuruFocus.com
Posted by: pachyderm (IP Logged)
Date: May 18, 2012 06:26AM
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,
Re: Comment for Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices -- GuruFocus.com
Posted by: gurufocus (IP Logged)
Date: May 18, 2012 10:12AM
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,
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