Buffett Agrees with me why Tex will earn $3.00 next yeat
I told you all amortization is a #$%$ expense for GAAP purposes and why TEX's earnings power is $3 next year not $2.65 here is from Buffett from his annual report out today! Almost finished reading it. He is the only good investor on Wall Street. Ackman is dumb, icahn is dumb, no one is smart but him
"I won’t explain all of the adjustments – some are small and arcane – but serious investors should
understand the disparate nature of intangible assets: Some truly deplete over time while others never lose value. With software, for example, amortization charges are very real expenses. Charges against other intangibles such as the amortization of customer relationships, however, arise through purchase-accounting rules and are clearly not real expenses. GAAP accounting draws no distinction between the two types of charges. Both, that is, are recorded as expenses when calculating earnings – even though from an investor’s viewpoint they could not be more different"
I'm with you guys....there is an initial cost to acquiring these assets in the purchase price but after that the amortization of them is fictional.....thx for the note on scla.......i will be careful, need to look at more, you are scaring me now.....have a good weeknd.