Why Charlie Munger HATED EBITDA:

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EBITDA is really useful in trading comps valuation since the P/E ratio doesn’t take into account the capital structure and EV/EBITDA does

Correct, it has its uses. But there are big problems with it, too.

Fiction earnings.

@OnlyMoat Yup

Great video. Particularly enjoyed understanding the origin. The Malone insight provided context as to what types of businesses benefit from ebitda. I would be interested in a video on equity/debt financing.

Thanks for the feedback! What specifically about equity/debt financing would be interesting?

Brian this video is a masterclass in clarity, and deep down comprehension of essentials. I am a non financier, striving to understand finances. Amortization and depreciation should always be presented as separate, because they are different in nature, and then added into non-cash

Cheers for that, Walter!