Mr. Munger and Mr. Buffett are inveighing against the use of Ebitda in the business world, or earnings before interest, tax, depreciation and amortization. Mr. Buffett launches the first salvo, saying that excluding depreciation is ridiculous. It's a line of argument he's advanced before.
But Mr. Munger says he hasn't gone far enough.
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"You've understated the horrors of the subject and the disgusting nature of the people who brought that term into the valuation of business," says Mr. Munger. "Now they use it in the business schools. That is horror squared."
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(END) Dow Jones Newswires
May 06, 2017 16:46 ET (20:46 GMT)