No. of Recommendations: 2

But I am still compelled to conclude that if options are expensed to any degree, the resulting earnings should not be divided by the full amount of diluted shares used to determine GAAP diluted EPS. Perhaps (probably) a lesser amount of dilution would still be appropriate.

That's fair. I would just add that both GAAP and Buffett would disagree on this point. That's not meant to be a de facto re-buttal to your point. GAAP and Buffett certainly aren't infallible.

I've went back and forth on the issue myself.

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