Charlie Munger Roasting People for 5 Minutes

In case this has never been posted here before, somebody put together one fantastic little video montage:


Charlie is a popular guy around these waterhole. Yet some of his comments are not really reflecting reality. For ex: he calls EBITDA as “bullsh!t earnings”. However, for many very profitable companies still I use EBITDA to compare with other companies in the sector.

EBITDA actually tells you better “operating metrics” than net profits. I mean most folks have no problem using FCF (free cash flow), cash doesn’t lie right?, so I don’t understand why then EBITDA is so wrong.

Tax rate changes company to company, similarly interest, a company that uses debt vs one that has issued equity.

This is just one of few other cases where I disagree with his views.