Why Warren Buffett and Charlie Munger don't like EBITDA as an earnings metric

Warren Buffett and late investor Charlie Munger have criticized EBITDA as a misleading earnings metric, with Munger famously calling it 'bullsh*t earnings' and Buffett saying those who use it are either trying to con investors or conning themselves. Both preferred GAAP earnings over adjusted figures, arguing that depreciation is a real expense and managements regularly waving away real costs is a red flag. Buffett also warned that current market conditions make value investing difficult as investors increasingly prefer gambling.