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

To: Shane M who wrote (5234)	11/11/1998 2:26:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78530

I;ve been on vacation for a while and I don't have time to restate Shane's post, which is worth reading again. But the answer to his question, is in my interpretation, that is exactly what you do with Disney earnings - add back amortization. And if you're taking it out of the income statement, you've got to take it out of the balance sheet. Drop goodwill, taking it out of equity, then calculate ROE based on that, if ROE is your thing. If the conclusion looks aggressive, go back and read what Buffett wrote in his annual reports about Cap Cities/ABC. Jim