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But at the same time, knowing that it’s more, I would say, a benchmark or an indicator if we’re on the right track versus, well, we’re going to judge success. Bill Sherman The second year CFO is going to look at likes and clicks and say, where do I put them on the balancesheet? So that’s the first thing.
Gain accounting advantage : Buffett reports on the performance of his operating businesses by grouping them according to similar balancesheet and income statement characteristics. His fluency in the language of accounting gives him clear sight to judge underlying business value. billion more than their total tangible book value.
For most companies intellectual property is something that sits on their balancesheet. Consider how Nest is networking its thermostats, smoke alarms, and cameras to create home security solutions, or how Caterpillar and GE are each networking their equipment and engines to save millions in maintenance costs.
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