Understanding Goodwill | Warren Buffett's Deep Dive

Goodwill and Its Amortization (1984 Berkshire Hathaway Letter, Appendix) In this powerful appendix, Warren Buffett breaks down the difference between accounting Goodwill and economic Goodwill. Accounting Goodwill is created when a company pays more for a business than its tangible assets are worth — and then amortizes that difference over time, even though the real economic value may be growing.

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