Warren Buffett pointed out a key difference between himself and Wall Street in his latest letter to shareholders of Berkshire Hathaway ( BRK.A -0.03%) ( BRK.B -0.17%). He noted that he doesn't use earnings before interest, taxes, depreciation, and amortization ( EBITDA ), referring to the financial metric as "a flawed favorite of Wall Street."

A 10% drop is a big enough deal that professional investors have a name for it — a “correction” — and the S&P 500’s 1.4% slide on Thursday sent the index to its first si