« Prosecutors' fallacy sampling and odds | Main | Curlicuing »

Owner earnings


But the accountants' job is to record, not to evaluate. The evaluation job falls to investors and managers. Accounting numbers, of course, are the language of business and as such are of enormous help to anyone evaluating the worth of a business and tracking its progress. Charlie and I would be lost without these numbers: they invariably are the starting point for us in evaluating our own businesses and those of others. Managers and owners need to remember, however, that accounting is but an aid to business thinking, never a substitute for it.

-- Warren Buffett

TrackBack

TrackBack URL for this entry:
http://www.stylizedfacts.com/cgi-sys/cgiwrap/fotohof/managed-mt/mt-tb.cgi/8550

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)