Savvy Trades and Investments

[nelson1234]

michael, interesting points. However I disagree with "Amortization is based on a real cash payment up front. GAAP just attempts to match the expense to the periods that benefit.."

That is, I agree that its based on a real cash payment. But the expense is somewhat arbitrary since it defines the valuation of a company as its book value, and any amount paid for a company above its book value should be expensed over along period of time.

best.