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.
Category: Investing Guru
Sustainability matters in stock market investing
Sustainability is key to long-term investment success
The relationship between GDP and stock prices
GDP (gross domestic product) growth is positively correlated with stock market. Buffett Indicator a powerful and persuasive explanation for it.
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.
79% of Buffett’s portfolio is invested in just 6 stocks
A whopping 79% of Buffett’s portfolio $338 billion is invested in just six stocks.
Inflation-proof investments
Selecting companies that can stand out under inflation is an indispensable factor in Buffett’s investment technique
Berkshire’s acquisition model
In his 1995 shareholder letter, Buffett fully and in detail explained Berkshire’s acquisition model
Pros and cons of employee stock options as compensation
Employee stock options as compensation, which is beneficial to employees, but damages the rights and interests of investors.
Average lifespan of companies
The average lifespan of listed companies in the U.S. stock market is about 20 years
What is the attraction of current Japanese stock market?
The size of Japanese stock market fell to the fifth in the world, attracting Buffett’s investment