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C-Span panel video with Buffett, Immelt, Schwab, Dimon, Yerger and Thain


Guest ajc
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Guest longinvestor

Great video, with a terrific panel but over 2 hours long. Here is an edited version, of only Buffett, that is just under 10 minutes long.

 

http://youtu.be/ausHoN8XOVY

 

An interesting tidbit in this clip is the discussion over FASB and Warren's comment (6:56 mark) was very interesting. He says that only 2 of the 500 companies in the S&P Index are applying the FASB as it relates to options accounting in the "preferred way"; The other 498 are using it in the "other way" (to boost earnings). He also says that the FASB was muscled into allowing the "other way".

 

Anybody know which two?

 

What's wrong in this picture? And this is just one way the books are cooked to make earnings look better than they actually are. I can think of pension liability accounting as well. Any others? What are the true earnings of the corporations? Are they desperate? Again, Warren has stated that at BRK, they "add up revenues, subtract expense, pay taxes and report earnings". How many corporations do this. Apparently not, as evidenced by overwhelmingly "smooth earnings" reported by them versus the lumps at BRK.

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