> The difference in standards between the startup universe and the 'real world' is actually scary. The 'real world' is scary too. Also, you can't really compar

> The difference in standards between the startup universe and the 'real world' is actually scary. The 'real world' is scary too. Also, you can't really compare the financial statements of startups with established blue chip companies. Investors do not expect nor are they looking for the same things from them. Just like people who buy into VC funds have different goals and expectations from those who invest in an index fund. VC funds, index funds, startups, blue chips all have different "standards". > Am I alone in thinking this? No, I'm sure a lot of people agree with you. It's just that Buffet and Munger aren't one of them. Whatever the accounting standards, I believe it was buffet who said you won't know who has been swimming naked until the tide pulls out ( we won't know how healthy the balance sheets are until we have a recession ). Enron, Washington Mutual, etc all had "healthy balance sheets" until they didn't. And all of them even had the seal of approval from the 3 or 4 major auditing firms too.