Why EBITDA Is Not Useful In Valuing Companies? - Warren Buffett

EBIDTA - A company's earnings before interest, taxes, depreciation, and amortization is an accounting measure calculated using a company's earnings, before interest expenses, taxes, depreciation, and amortization are subtracted, as a proxy for a company's current operating profitability.

Why EBITDA Is Not Useful In Valuing Companies?

00:13 Buffett is against using EBITDA as he believes depreciation is the worst kind of expense a business can have.
01:00 Using EBITDA is in the interest of Wall Street to inflate valuations.
2:55 Munger Believes teaching EBIDTA in Business schools is "Horror Squared"

#Buffett #Munger #EBITDA
Value Investor's Library:

The Intelligent Investor - https://amzn.to/3rTTQTz
Security Analysis - https://amzn.to/37cEgu6
Common Stocks Uncommon Profits - https://amzn.to/2ZUB6ar
The Little Book Of Valuation - https://amzn.to/378Ye9f
The Snowball - https://amzn.to/3d4ZU7v
Modern Value Investor - https://amzn.to/3afTGQj
Dhandho Investor - https://amzn.to/3d341B0
The Little Book That Beats The Market - https://amzn.to/2ZeEiNG
The Most Important Thing - https://amzn.to/3dca32a
Value Investing From Graham To Buffett - https://amzn.to/3jRlQUX
One Up On Wall Street - https://amzn.to/2Z9wxsy
Fooled By Randomness - https://amzn.to/37cPHSO
Mastering The Market Cycle - https://amzn.to/3jW8JSF

Видео Why EBITDA Is Not Useful In Valuing Companies? - Warren Buffett канала Value Investors Archive