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Brian Feroldi Explains Why Warren Buffett Thinks EPS is Overrated
Welcome to the Investing for Beginners podcast. Today, we're joined by financial educator Brian Feroldi to discuss Warren Buffett's perspective on earnings per share. We'll explore why EPS might be overrated and dive into the importance of return on capital metrics for investors.
[00:01:14] Buffett's view: Earnings per share is overrated compared to return on capital.
[00:03:21] Four ways to measure return on capital: ROIC, ROE, ROA, and ROCE.
[00:07:03] Simple example: Million-dollar investment illustrates importance of return on capital.
[00:12:28] Discount rate discussion: 10% minimum for…
The skinny
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