Quotes Entirely Relevant to Investing
by Mr JugglesThere is lots of things to take into account? Do you even know what your EBITDA is? EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION? Gives the true picture of a company’s profitability.
-Paulie Walnuts, Season 6 Episode 4 of the Sopranos
Past Quotes Entirely Relevant to Investing
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[…] Maybe I am quibbling about semantics here, but deleveraging does not add to what I consider “earnings capacity.” There is a reason it is called Earnings Before Interest Taxes Depreciation and Amortization. Deleveraging simply reduces interest expense. Sheesh, even Paulie “gives the true picture of a company’s profitability” Walnuts knows that. Of course, all that debt pulls out a lot of cushioning should the market go south. This is part of the mindset that contributes to the wrong headed impression that financial structuring of this kind alone improves the fundamentals of a firm. And how”s that been working for investors today who bought in at $16-17? Well, let”s just take a look: […]