Last week, I wrote about current aggressive accounting practices. This week, I’m going to write about future aggressive accounting that will be practiced. How can I so confidently predict the future? I’ve been doing this a long time. Some things are easy to forecast. What’s the accounting treatment I will Continue Reading
No Accounting For Taste: Reviewing Lemonade’s Revenue
I was looking at Lemonade’s 10-K the other day and noticed something startling and wondered how I had never noticed it before. Lemonade uses inappropriate accounting for its reinsurance which has the effect of inflating its revenue. Importantly, there is no impact on net income, so this effect is purely Continue Reading
Muddy Waters Attacks Fairfax With Unfair Facts
One thing I was well known for during my investing days was critiquing the sell side analysts. I’m sure many will tell you how they dreaded seeing an email response from me after they published a report. I had what I thought were fairly low expectations – the report should Continue Reading