5min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP446: Berkshire Hathaway Annual Shareholders Meeting 2022

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

Is Owner's Earnings a Good Number?

Owner's earnings is net income plus depreciation, amertization, non cash items, deferred taxes, minus capital expenditures. Stak: Why does boffit focus on operating earnings and why he makes it such a point to focus on that? Ciabra: Because ibethat is earnings before interests and tax, depreciation and amatization. Those are real expenses. And so the best stock investors can calculate, or, well, i wouldn't say calculate, i would rather estimate what the future owner's earnings would be.

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