Look-through earnings take the current period earnings of a company (as reported in a quarterly or annual report) and add to that figure all sources of earnings expected in the long … See more

Warren Buffett explained his concept of look-through earnings in his booklet"An Owner's Manual," which was originally distributed to Berkshire Hathaway Inc.Class A and Clas… See more

Buffett believes that the intrinsic value of Berkshire Hathaway Inc. has grown at approximately the same rate as its look-through earnings in the past and will continue to … See more

Let's walk through an example of calculating look-through earnings. In this example, we'll use a fictional company, Company XYZ, in which you own stock. You own 10… See more

Look-through earnings consider dividends, retained earnings, and taxes, not just the dividends issued to an investor. This is important because companies that retain earnings m… See more