Does Warren Buffett Know Something That Wall Street Doesn't? The Answer Is as Clear as Day.
Warren Buffett pointed out a key difference between himself and Wall Street in his latest letter to shareholders of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). He noted that he doesn't use earnings before interest, taxes, depreciation, and amortization (EBITDA), referring to the financial metric as "a flawed favorite of Wall Street." This divergent take on EBITDA reflects just the tip of the iceberg of what could be described as diametrically different perspectives. Does Buffett know something Wall Street doesn't? The answer is as clear as day.Image source: The Motley Fool.Continue reading
Warren Buffett pointed out a key difference between himself and Wall Street in his latest letter to shareholders of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). He noted that he doesn't use earnings before interest, taxes, depreciation, and amortization (EBITDA), referring to the financial metric as "a flawed favorite of Wall Street."
This divergent take on EBITDA reflects just the tip of the iceberg of what could be described as diametrically different perspectives. Does Buffett know something Wall Street doesn't? The answer is as clear as day.
Image source: The Motley Fool.
