Posts  / #POST-250348
REDDIT

“B*llshit earnings” and other methods of accounting obfuscation

Charlie Munger once famously said to substitute the phrase “EBITDA” with “b\*llshit earnings”

I definitely find myself trying to make sense of a 10Q where the GAAP EPS and adjusted EPS paint two incredibly different stories.

I was curious what red flags you keep an eye out for while looking at financial statements. Also would love to hear some fun stories (minus the classics e.g. Enron)