Oscar Would Be Proud
I seldom take the time anymore to wonder through other places in Fooldom, and since the discussion boards for the featured home page articles were removed some time ago, I almost never read any of those featured articles.
This morning on the way to CAPS, the title of one of those featured articles caught my eye. The title was The Power of the Chairman's Letter.
Folks I have to tell you that without a doubt, this was the silliest article I have read in quite sometime.
Why? Well I learned in this article what RANTW, or Return on Average Net Tangible Worth, is a Warren Buffett metric, or at least I think that's what I learned.
At any rate, as I got this mental picture of Mr. Buffett using this worthless little metric I started laughing. It just struck me as being the silliest thing I had read in forever.
But wanting to be fair, and knowing these folks start early, I called several friends that are CFAs and asked them had they ever heard of this metric that Warren Buffett uses.
The first CFA I called, whom I have known forever, hung-up on me. He calmly and politely told me to go do something strange to myself and hung-up.
Undeterred, I called another friend of mine and asked him if he had ever heard of the little metric that Mr. Buffett used called RANTW. I had to explain to him what it was so I knew he had never heard of it, and sure enough he hadn't.
When I was growing up, my dad had a gold statuette in his office. It was a statuette of an executive carrying a brief case and wearing a hat. Stuck in the back of this figure was a gold key and on the front of the little stand to which this thing was mounted was a little plaque that read..."Wind Him Up and He Does Nothing."
Which is exactly what the article is worth to an investor...nothing.