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Buffett’s owner’s earnings is
(a) reported earnings plus
(b) depreciation, depletion, amortization, and certain other non-cash charges
(c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c).