No. Investors started focusing on future free cash flow, cash in the bank and positive unit economics. The actual dollar amount of cash and positive lifetime value per unit of production.
You can't spend profit. You can cash.
"Cash is a fact. Profit is an opinion" Al Rappaport
You can't spend profit. You can cash.
"Cash is a fact. Profit is an opinion" Al Rappaport
"Accounting consequences don't influence our operating or capital-allocation decisions. When acquisition costs are similar we much prefer to purchase $2 of earnings not reportable by us under standard accounting principles than to purchase $1 of earnings that is reportable." WB
"In the aggregate and over time, we expect the unreported earnings to be fully reflected in our intrinsic business value through capital gains. Intrinsic value is discounted value of the cash that can be taken out of a business during its remaining life." berkshirehathaway.com/ownman.pdf
