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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: petal who wrote (66514)2/11/2021 4:08:02 PM
From: JohnyP  Read Replies (3) | Respond to of 78820
 
I used to treat them as non-existent also until I read the essays of Warren Buffett. High goodwill can be a sign of a strong franchise, with the ability to pass increasing costs of inflation to its customers. That goodwill is never modified upwards, but it is charged off when it is impaired.

If anything, for companies with high goodwill, Book Value is not the metric to value the company and one has to rely on cash flows or income.