Unconventional ...'s  Instablog

Unconventional Capital Wisdom
Send Message

MicroCap investor looking for the next intelligent fanatic led business. Co-authoring the Intelligent Fanatics Project (www.intelligentfanatics.com).

My company:
Unconventional capital wisdom llc
  • EBITDA Expect Before Investing To Dare Assumptions 3 comments
    Feb 10, 2014 10:12 AM

    "Does management think the tooth fairy pays for capital expenditures?" - Warren Buffett

    "I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings."- Charlie Munger

    We've always been amused by Warren Buffett and Charlie Munger's commentary on how things are just blindly followed on Wall Street. One particular financial metric, EBITDA (Earnings Before Interest Tax Depreciation and Amortization), has been often used by analysts and companies when in correspondence with shareholders. Although EBITDA does have its positives as being a "quick and dirty" proxy of cash flow, debt coverage, and operational comparability, the two great investors remind us that EBITDA has its drawbacks. We should be weary of companies that put a strong emphasis on this financial metric because they are either up to something or trying to perform slight of hand tricks on investors. We feel that investors can benefit more from our acronym of EBITDA which is Expect Before Investing To Dare Assumptions.

    To read more click here or here.

Back To Unconventional Capital Wisdom's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (3)
Track new comments
  • drew111
    , contributor
    Comments (514) | Send Message
    As soon as I read the title, Charlie Munger's quote came to mind. In fact I said it out loud. My dog gave me a funny look since he is the only one home to hear me.
    10 Feb 2014, 03:05 PM Reply Like
  • Unconventional Capital Wisdom
    , contributor
    Comments (268) | Send Message
    Author’s reply » Drew,


    You have a smart dog. My dog generally cares less when I'm reading and mumbling stuff. He'd rather make funny faces and talk when I sing or play guitar.
    10 Feb 2014, 05:08 PM Reply Like
  • bradlewski
    , contributor
    Comments (191) | Send Message
    UCW & Drew


    Nice acronym.
    Reminds me of another accounting term, Generally Accepted Accounting Principles-GAAP. My accountaint always referred to them as Commonly Reported Accounting Principles (CRAP). Not quite the same as EBITDA but still just as important.


    Your dogs seem to have talent as well.
    I did have a cat for 15 yrs. Best alarm clock I ever had. Even when I was out of town, he would wake my wife up. Never could teach him how to dial long distance.
    13 Feb 2014, 09:55 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.