Candor Advisors

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Why Munger Calls EBITDA 'Bullsh*t Earnings'

A founder asked me why we often use a term only a CPA could love as THE metric for deals, and why one of the great investors of our time, Charlie Munger calls that 'Bullsh*t Earnings'. Here's our view of why he's not wrong and why deal pros should keep using that measure anyway.

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Why Munger Calls EBITDA 'Bullsh*t Earnings' Candor Advisors