--- title: "Meaning & Key Takeaway of: I think that, every time you saw the word…" description: "\"I think that, every time you saw the word EBITDA, you should substitute the word \"bullshit\" earnings.\" — Charlie Munger" image: "https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg" --- # I think that, every time you saw the word EBITDA, you… ![“I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings.” quote by Charlie Munger](https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg) [Download](https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg) [Open image](https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg) > “I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings.” [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. EBITDA is often used to mask poor performance, so replace it with a blunt term to see reality. **In simple terms:** EBITDA can hide bad results. Key Takeaway Question financial metrics critically. Themes finance accounting transparency Mood skeptical critical Type cautionary analytical When to use this quote - investor analysis - corporate reporting - budget reviews Key Concepts valuation earnings quality Questions to Reflect On - Do you rely on EBITDA without scrutiny? - How can you verify earnings quality? A Different Perspective EBITDA may still be useful when used correctly. ★ ★ ★ ★ ★ No ratings yet [Bullshit](https://sms4smile.com/quotes/about/bullshit/) [Investing](https://sms4smile.com/quotes/about/investing/) [Thinking](https://sms4smile.com/quotes/about/thinking/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [“I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings.”](https://sms4smile.com/quotes/charles-t-munger/i-think-that-every-time-you-see-the-word-ebitda-you-should-substitute/) [Charles T. Munger](https://sms4smile.com/quotes/author/charles-t-munger/) > [The word "expert" in a self description should be followed by the word 'bullshit.'](https://sms4smile.com/quotes/anonymous/the-word-expert-in-a-self-description-should-be-followed-by-the-word/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“I will call bullshit on that so many times that the word bullshit will lose all meaning. -Milo”](https://sms4smile.com/quotes/cora-carmack/i-will-call-bullshit-on-that-so-many-times-that-the-word-bullshit/) [Cora Carmack](https://sms4smile.com/quotes/author/cora-carmack/) > [“Dear Journal, I just realized that the key to advertising can be summed up in one word: Bullshit.”](https://sms4smile.com/quotes/whitney-g/dear-journal-i-just-realized-that-the-key-to-advertising-can-be/) [Whitney G](https://sms4smile.com/quotes/author/whitney-g/) > [Pain is an eight lettered word. Bullshit.](https://sms4smile.com/quotes/blake-toth/pain-is-an-eight-lettered-word-bullshit/) [Blake Toth](https://sms4smile.com/quotes/author/blake-toth/) > [I think there's an awful lot of twaddle and bullshit on EVA. The whole game is to turn retained earnings into more earnings. EVA…](https://sms4smile.com/quotes/charlie-munger/i-think-there-s-an-awful-lot-of-twaddle-and-bullshit-on-eva-the-whole/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [ Everyone caved, adopted loose \[accounting\] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants,… ](https://sms4smile.com/quotes/charlie-munger/everyone-caved-adopted-loose-accounting-standards-and-created-exotic/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [If we would have anything of benefit, we must earn it, and earning it become shrewd, inventive, ingenious, active, enterprising.](https://sms4smile.com/quotes/henry-ward-beecher/if-we-would-have-anything-of-benefit-we-must-earn-it-and-earning-it/) [Henry Ward Beecher](https://sms4smile.com/quotes/author/henry-ward-beecher/) > [These Americans are among the working poor with full-time jobs earning $5.15 an hour. 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All activism is volunteering in that…](https://sms4smile.com/quotes/susan-j-ellis/paul-revere-earned-his-living-as-a-silversmith-but-what-do-we/) Susan J. Ellis > [I never knew an early-rising, hard-working, prudent man, careful of his earnings, and strictly honest who complained of bad luck.](https://sms4smile.com/quotes/henry-ward-beecher/i-never-knew-an-early-rising-hard-working-prudent-man-careful-of-his/) [Henry Ward Beecher](https://sms4smile.com/quotes/author/henry-ward-beecher/) > [I was focused on The Hunger Games movie with my director, with the studio, and with the cast and crew. We all just focused…](https://sms4smile.com/quotes/nina-jacobson/i-was-focused-on-the-hunger-games-movie-with-my-director-with-the/) [Nina Jacobson](https://sms4smile.com/quotes/author/nina-jacobson/) > [“This spending of the best part of one's life earning money in order to enjoy a questionable liberty during the least valuable part of…](https://sms4smile.com/quotes/henry-david-thoreau/this-spending-of-the-best-part-of-one-s-life-earning-money-in-order/) [Henry David Thoreau](https://sms4smile.com/quotes/author/henry-david-thoreau/) ## More by Charlie Munger > [Almost all good businesses engage in 'pain today, gain tomorrow' activities.](https://sms4smile.com/quotes/charlie-munger/almost-all-good-businesses-engage-in-pain-today-gain-tomorrow/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well…](https://sms4smile.com/quotes/charlie-munger/if-you-want-good-behavior-don-t-pay-on-a-commission-basis-our-judges/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group then to…](https://sms4smile.com/quotes/charlie-munger/acquire-worldly-wisdom-and-adjust-your-behavior-accordingly-if-your/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I think time and time again, in reality, psychological notions and economic notions interplay, and the man who doesn't understand both is a damned…](https://sms4smile.com/quotes/charlie-munger/i-think-time-and-time-again-in-reality-psychological-notions-and/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I have what I call an iron prescription that helps me keep sane when I naturally drift toward preferring one ideology over another and…](https://sms4smile.com/quotes/charlie-munger/i-have-what-i-call-an-iron-prescription-that-helps-me-keep-sane-when/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The tax code gives you an enormous advantage if you can find some things you can just sit with.](https://sms4smile.com/quotes/charlie-munger/the-tax-code-gives-you-an-enormous-advantage-if-you-can-find-some/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you. And…](https://sms4smile.com/quotes/charlie-munger/the-great-lesson-in-microeconomics-is-to-discriminate-between-when/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Some years ago one oil company bought a fertilizer company, and every other major oil company practically ran out and bought a fertilizer company.…](https://sms4smile.com/quotes/charlie-munger/some-years-ago-one-oil-company-bought-a-fertilizer-company-and-every/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [ They \[Mc Donalds\] take people and give them a first job, which enables them to get a second job. They do a very good… ](https://sms4smile.com/quotes/charlie-munger/they-mc-donalds-take-people-and-give-them-a-first-job-which-enables/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [What good is envy? It’s the one sin you can’t have any fun at.](https://sms4smile.com/quotes/charlie-munger/what-good-is-envy-it-s-the-one-sin-you-can-t-have-any-fun-at/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good…](https://sms4smile.com/quotes/charlie-munger/we-believe-that-almost-all-really-good-investment-records-will/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. Every newspaper is scrambling…](https://sms4smile.com/quotes/charlie-munger/it-is-way-less-certain-to-be-a-wonderful-business-in-the-future-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [In the corporate world, if you have analysts, due diligence, and no horse sense, you've just described hell.](https://sms4smile.com/quotes/charlie-munger/in-the-corporate-world-if-you-have-analysts-due-diligence-and-no/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We have to have a special insight, or we'll put it in the 'too tough' basket. All of you have to look for a…](https://sms4smile.com/quotes/charlie-munger/we-have-to-have-a-special-insight-or-we-ll-put-it-in-the-too-tough/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up…](https://sms4smile.com/quotes/charlie-munger/i-ve-heard-that-one-half-of-the-students-at-elite-schools-want-to-go/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Explore all 544 Charlie Munger quotes ](https://sms4smile.com/quotes/author/charlie-munger/) ## More Bullshit quotes > [I rap when I'm rich. I rap when I'm broke. I rap when I'm bullshit in the street. I rap about only having one…](https://sms4smile.com/quotes/killer-mike/i-rap-when-i-m-rich-i-rap-when-i-m-broke-i-rap-when-i-m-bullshit-in/) [Killer Mike](https://sms4smile.com/quotes/author/killer-mike/) > [Yesterday's truth is today's bullshit. Even yesterday's liberating insight is today's jail of stale explanation.](https://sms4smile.com/quotes/brad-blanton/yesterday-s-truth-is-today-s-bullshit-even-yesterday-s-liberating/) [Brad Blanton](https://sms4smile.com/quotes/author/brad-blanton/) > [The one thing I absolutely hate about social media are the people who abuse it. 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And when you do, do me this one favor: don’t get all caught up in the…](https://sms4smile.com/quotes/justin-halpern/someday-you-re-gonna-go-stupid-for-a-woman-and-when-you-do-do-me-this/) [Justin Halpern](https://sms4smile.com/quotes/author/justin-halpern/) > [How can I set free anyone who doesn't have the guts to stand up alone and declare his own freedom? I think it's a…](https://sms4smile.com/quotes/jim-morrison/how-can-i-set-free-anyone-who-doesn-t-have-the-guts-to-stand-up-alone/) [Jim Morrison](https://sms4smile.com/quotes/author/jim-morrison/) > [“Please, boy. Let’s not start out with either of us insulting the other’s intelligence. There are only three people in life you can never…](https://sms4smile.com/quotes/scott-lynch/please-boy-let-s-not-start-out-with-either-of-us-insulting-the-other/) [Scott Lynch](https://sms4smile.com/quotes/author/scott-lynch/) > [The idea of photography as evidence is pure bullshit. 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Cut away the bullshit and live your life.”](https://sms4smile.com/quotes/cody-edward-lee-miller/t-is-all-that-separates-i-can-t-from-i-can-cut-away-the-bullshit-and/) [Cody Edward Lee Miller](https://sms4smile.com/quotes/author/cody-edward-lee-miller/) > [I wouldn't mind gigging around the same era as Jesus, after he gives his speech about the meek and how blessed they are and…](https://sms4smile.com/quotes/jim-jefferies/i-wouldn-t-mind-gigging-around-the-same-era-as-jesus-after-he-gives/) [Jim Jefferies](https://sms4smile.com/quotes/author/jim-jefferies/) > [Alright, thats enough of this Kung-Fu bullshit.](https://sms4smile.com/quotes/john-mcclane/alright-thats-enough-of-this-kung-fu-bullshit/) [John Mcclane](https://sms4smile.com/quotes/author/john-mcclane/) > [“To recognize bullshit, nose is better than ear.”](https://sms4smile.com/quotes/toba-beta/to-recognize-bullshit-nose-is-better-than-ear/) [Toba Beta](https://sms4smile.com/quotes/author/toba-beta/) > [Loyal people always seem to go through the most bullshit!](https://sms4smile.com/quotes/nishan-panwar/loyal-people-always-seem-to-go-through-the-most-bullshit/) [Nishan Panwar](https://sms4smile.com/quotes/author/nishan-panwar/) > [“I wasn't sure which was worse - to know you were a liar or to believe your own bullshit.”](https://sms4smile.com/quotes/eileen-cook/i-wasn-t-sure-which-was-worse-to-know-you-were-a-liar-or-to-believe/) [Eileen Cook](https://sms4smile.com/quotes/author/eileen-cook/) [Browse all 1,074 Bullshit quotes ](https://sms4smile.com/quotes/about/bullshit/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "I think that, every time you saw the word EBITDA, you should substitute the word \"bullshit\" earnings.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/charlie-munger/i-think-that-every-time-you-saw-the-word-ebitda-you-should-substitute/", "about": { "@type": "Thing", "name": "Bullshit" }, "@id": "https://sms4smile.com/quotes/charlie-munger/i-think-that-every-time-you-saw-the-word-ebitda-you-should-substitute/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg", "contentUrl": "https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg", "url": "https://sms4smile.com/quotes/i/612/charlie-munger-458_bullshit_i-think-that-every-time-you-saw-the-word_1281938.jpg", "width": 1080, "height": 1080, "caption": "“I think that, every time you saw the word EBITDA, you should substitute the word \"bullshit\" earnings.” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Charlie Munger", "item": "https://sms4smile.com/quotes/author/charlie-munger/" }, { "@type": "ListItem", "position": 4, "name": "I think that, every time you...", "item": "https://sms4smile.com/quotes/charlie-munger/i-think-that-every-time-you-saw-the-word-ebitda-you-should-substitute/" } ], "@id": "https://sms4smile.com/quotes/charlie-munger/i-think-that-every-time-you-saw-the-word-ebitda-you-should-substitute/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```