EP12 Owner Earnings By Warren Buffett

Support this podcast through your donation: https://paypal.me/valueinvesting Warren Buffett defined the earnings called "Owner Earnings" that is more relevant to the valuation of a company than the reported earnings on the income statement.  The owner earnings can be calculated by adjusting the reported accounting earnings in the following ways: Owner Earnings = (a) Reported earnings + (b) depreciation, depletion, amortization and certain other non-cash charges - (c) the average annual amount of capitalized expenditures for plant and equipment = cash flow from operating activities - capital expenditures Podcast Website: http://valueinvesting.blubrry.net/ Reference Documents: 1986 Berkshire Hathaway Shareholder Letter