This conversation is part of our “Wisdom in Books” series and podcast.
In this interview, Professor Baruch Lev shares key insights from his book, The End of Accounting and the Path Forward for Investors and Managers. Lev argues compellingly that traditional financial reports — once the cornerstone of investment decisions — have increasingly lost relevance, particularly in an economy dominated by intangible assets such as patents, brands, and human capital. Drawing upon extensive empirical research, Lev reveals why conventional accounting methods fail to capture the true value drivers of modern businesses, often misleading investors rather than guiding them.
Throughout the conversation, Lev highlights the paradoxes inherent in current financial reporting practices, particularly how investments in critical intangible assets frequently appear as losses rather than valuable contributions. Investors relying solely on traditional earnings metrics can be significantly misled about a company’s prospects. Instead, Lev proposes a fresh analytical approach, encouraging investors to focus on strategic assets — unique, scarce, and difficult-to-imitate resources that genuinely drive long-term corporate success.
For seasoned investors who recognize the limitations of standard financial metrics, this interview offers a thoughtful exploration of alternative frameworks for assessing value creation. Lev’s insights promise to reshape how investors evaluate companies and make informed, strategic decisions.
Insights you’ll gain in this conversation:
The Relevance Crisis of Traditional Accounting
The Rise and Impact of Intangible Assets
Strategic Assets and How to Identify Them
Industry-Specific Reporting Solutions
Practical Insights for Investors: Oil & Gas, Insurance, Pharma, Biotech, and Subscription Services
The Pitfalls of Quarterly Earnings Predictions
Moving Beyond Earnings: What Investors Should Really Watch
Let’s dive in.
