The first step for investors is to come to a new understanding of reported earnings and the book value of equity.
About forty years ago Buffett experienced a Damascene conversion
Book Value – Ain’t what it used to be – With the rise of company investment in intangibles, book value is losing its relevance.
Something over 80% of the market capitalization of the S&P 500 is made up of intangibles. Only a fraction of that appears on balance sheets.