Buffett admits he overpaid for Kraft, after Kraft Heinz took a $15 billion charge-off that flowed through to Berkshire, but he won’t give up on finding more big acquisitions
Berkshire Hathaway’s Warren Buffett adjusts his bottom line with unconventional accounting, just like the Wall Street bankers and corporate CEOs he frequently criticizes for adjusting standard earnings to tell a better story. The difference is that Buffett doesn’t explicitly call the number he’d rather investors focus on an “adjusted EBITDA.” In his most recent letter to shareholders, Buffett claims his brand of earnings adjustment is a “far cry” from the presentations made by others.
Paul Zarowin, a professor of accounting at the Stern School of Business at New York University, told MarketWatch, “If Berkshire Hathaway is holding a lot of assets that are marked-to-market now, it makes sense that he would shift his focus to share price. A new emphasis on share repurchases is aligned with that.
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