Warren Buffett on how to think about Goodwill

Рет қаралды 24,787

Ralph Khattar

3 жыл бұрын

Пікірлер: 20

@raindogs451 Жыл бұрын

My God! A BH shareholder is constitutionally unable to ask a question in less than 8 minutes.

@candyfloss184 2 жыл бұрын

Thank you 🙏

@paouvous Жыл бұрын

Please also post the year the video was taken. It is important for context.

@josephselwan1652 Жыл бұрын

This video is an excerpt from the 2011 annual shareholder meeting. :)

@Pizza-gb1ch 18 күн бұрын

Agreed.

@marcusdekens3291 Ай бұрын

Goodwill can never be amortized, as it has an indefinite useful life. However, it should be regularly tested for impairment, and when impaired the "Loss on Impairment" account is debited.

@fearmetoo-le8dw Ай бұрын

Not necessarily. Eg. goodwill on SPV with a closure date upon maturity of securitized instruments.

@wahyuramadhan195 Жыл бұрын

Thanks for sharing but why dont they talk in everyday language, i cant understand 😭😭

@josephselwan1652 Жыл бұрын

You have to learn accounting to understand what they mean.

@fearmetoo-le8dw Ай бұрын

goodwill is simply when you pay more than the what the physical assets of the company is worth. eg. if you pay $150 million for a company, but the company is worth $100 million, you created $50 million in good million. this is necessary because without goodwill you will recognize an immediate $50 million loss upon purchase of the company (you had $150M, but now only have $100M). Decades ago, accountants use something called straight line amortization where you slowly spread the loss for 30 years (you record a loss of $1.6M every year for 30 years instead of an immediate $50M loss). Nowadays, you record the fair value of the company where you get another company to appraise the net present value of the future free cashflows of the company you bought, which can be very easily abused (goodwill can INCREASE just by appraisal), but a completely different story.

@Pizza-gb1ch 18 күн бұрын

They are talking every day language if business: accounting. 💁

@billykhoabillykhoa7844 2 жыл бұрын

Wait is this Joel Tillinghast from Fidelity?

@nhanha7433 2 жыл бұрын

System.

@hubertnowak8811 2 жыл бұрын

u high or smth?

@nhanha7433 2 жыл бұрын

We will do the subsidy. By ensure they make profits. By print the monies to ensure they do no harm business liquidate or our security home land fail. For their massive earn. We will create cash flow transparency.

@nhanha7433 2 жыл бұрын

Cigarette example narcotics drug. Alcoholic. Arms.

@nhanha7433 2 жыл бұрын

And harm watcher workers life.