Core Viewpoint - The article discusses the importance of understanding value investing and critiques common Wall Street theories, particularly focusing on the misleading nature of terms like EBITDA, EMH, and Beta, as emphasized by investment legends like Buffett, Graham, and Fisher [1][3][9]. Summary by Sections Investment Philosophy - The article begins by highlighting the insights of Yang Yuebin, a fund manager who recently attended the Berkshire Hathaway shareholder meeting, emphasizing the essence of value investing through the "duck-rabbit illusion" [1][6]. - It references Graham's warnings about the dangers of superficial knowledge in investing and the misleading theories that can arise from it [2][3]. Critique of Wall Street Theories - The author critiques the Efficient Market Hypothesis (EMH), Beta, and EBITDA, arguing that these concepts mislead investors and undermine the foundations of modern portfolio theory [3][4]. - Buffett's repeated criticisms of these theories are noted, suggesting they challenge the prevailing investment philosophies in both Western and emerging markets [4][7]. Risk and Return Analysis - The article stresses that investment decisions should be based solely on risk and return analysis, without unnecessary complications [4][5]. - It discusses the psychological aspect of investing, using the "duck-rabbit illusion" to illustrate how different perspectives can lead to varying interpretations of risk and return [5][6]. Misinterpretation of EBITDA - The article delves into the pitfalls of using EBITDA as a measure of profitability, arguing that it ignores essential costs like depreciation, which can lead to significant misjudgments about a company's financial health [11][12]. - Buffett's disdain for EBITDA is highlighted, with examples illustrating how it can mislead investors regarding a company's true earnings potential [11][12][19]. Conclusion and Future Outlook - The article concludes by emphasizing the need for investors to be wary of misleading financial jargon and to maintain a clear understanding of risk and return to avoid falling into the "duck-rabbit illusion" [23][24]. - It reflects on Buffett's legacy and the importance of his teachings in guiding future investors [26][27].