EBITDA
Buffett and Munger don't use it. Munger went as far as saying "anytime you see the words 'EBITDA earnings,' you should substitue '[censored] earnings.'"
Lately, I have been reading Eddie Lampert's letter to shareholders and it's almost as if I was reading Buffett's letters [but with less humor]. One thing that stood out was Lampert's excessive use of EBITDA.
Lampert is currently managing a retail company. Does this means EBITDA is significant in evaluating retail businesses?
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