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5. Per Buffett, Berkshire's net income gures will be severely distorted in future quarterly and annual reports. In the Letter to Shareholders of the 2017

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5. Per Buffett, Berkshire's net income gures will be severely distorted in future quarterly and annual reports. In the Letter to Shareholders of the 2017 Annual Report, Buffett states: \"I must rst tell you about a new accounting rule - a generally accepted accounting principle (GAAP) - that in future quarterly and annual reports will severely distort Berkshire's net income gures and very often mislead commentators and investors. The new rule says that the net change in unrealized investment gains and losses in stocks we hold must be included in all net income gures we report to you. That requirement will produce some truly wild and capricious swings in our GAAP bottom-line. Berkshire owns $170 billion of marketable stocks (not including our shares of Kraft Heinz), and the value of these holdings can easily swing by $10 billion or more within a quarterly reporting period. Including gyrations of that magnitude in reported net income will swamp the truly important numbers that describe our operating performance. For analytical purposes, Berkshire's \"bottom-line" will be useless." Did Buffett's prediction prove to be true? Explain

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