Mr. Buffett: Who Really Cooks the Books Message Board

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Non-Tech : Mr. Buffett: Who Really Cooks the Books

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To: Didi who started this subject	7/25/2002 5:12:37 PM
From: Original Mad Dog	Read Replies (1) of 3

I think the key focus should be on getting full and accurate information into shareholder's hands. The Internet makes the distribution of that information easy; the argument seems to be about what form the information should be in. Expense the options, says Buffett. How can we? argue some corporations. Would you "rebalance the outstanding options each quarter based on how many expired or failed to vest due to employee turnover? Would you re-expense them based on the stock's movement relative to the option strike prices? My proposed solution is that the companies should release the underlying information, and leave it to the public to develop models to be used in analyzing that information. With options, all we really need to know is: (1) how many options are outstanding and at what strike prices and vesting/expiration dates. Maybe also what is the employee attrition rate, too. With that information, any reasonably bright eight grade algebra student could develop at least a crude model for expensing the options. Telling us we can't have any information because they don't know how to "expense" it is a copout IMO.

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