Operating Profit to Cover EBITDA

EBITDA gives you a sense of how well is this business doing under its own steam. Charlie Munger calls ebit dar BS earnings because if you're a business and the Berkshire owns some very capital intensive businesses like railroads, right? If you own those, they're going to find out life, right? And if you say, let's ignore depreciation, what you're really saying is, let's pretend those things aren't deteriorating over time. There's no cost on the cash flow statement of that deterioration. Andrew Keen: How good is it when there's no cost to owning an old car at $40,000 in years two through nine? Charles Munger: It