Why would Buffett oppose to EBITDA and financial forecasts?

In Buffett’s 2020 shareholder letter, he mentioned several common but unreasonable accounting techniques used by CEOs of US-listed companies in their financial statements: especially EBITDA and financial forecasts.

M&A options’ taxation, accounting items, and rights and obligations arrangements

In Buffett’s 1999 shareholder letter (the content in italics in this article), he spent a lot of space explaining to investors the taxation, accounting items, and rights and obligations of many corporate M&A options.

Berkshire’s acquisition model

In Berkshire’s (ticker: BRK.A and BRK.B) shareholder letter in 1995, Buffett fully explained Berkshire’s acquisition model in detail: Minority or full ownership Charlie Munger, Berkshire’s Vice Chairman and my partner, and I want to build a collection of companies – both wholly- and partly-owned – that have excellent economic characteristics and that are run by … Continue reading “Berkshire’s acquisition model”

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