Goodwill is paid to buy a biz, Return on Net Tangible Assets tells the quality of biz.
―Goodwill should not be looked at to calculate the Fundamental attractiveness of a business. RoNTA should be seen. ―But when analysing a business, which took over this business by paying Goodwill above the Book value, you should include Goodwill to calculate its profitability. #BerkshireHathaway AGM 2011 #warrenbuffett #charliemunger
