Comments by "Magic Beans" (@Magic_beans_) on "Michael Burry's Investing Formula" video.

  1. He didn’t really explain EBITDA, just said what it stands for and that it’s another measure of profitability. To address that question (not that anybody asked) I’d say EBITDA has two especially good uses: One, it helps make companies more comparable because maybe company A took on more debt while company B issued more equity. Company B will automatically look more profitable because interest is an expense and dividends aren’t. Two, EBITDA is nice over shorter timelines because it focuses on things management can quickly control (staffing and supplies yes, equipment purchases from five years ago no).
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