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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Sun Tzu who wrote (4482)4/13/1999 12:54:00 PM
From: Kirk ©  Respond to of 15132
 
Operating earnings.... I learned to pretty much ignore them long ago when IBM was writing stuff off left and right before it crashed.... One clue to buy near the bottom for me in 1993 at $22/share was they stopped writing off so much stuff....

A large Company can toss out a business every quarter and write it off as a one time charge...yet a new business does not get that treatment.... A healthy company should be growing more business than writing off businesses.... so I just ignore it or give it less value than total earnings. I never really understood why BB only talks about operating earnings after my IBM experience.

Kirk