Warren Buffett blasted earnings manipulation as 'disgusting' in his annual letter. Here's what he meant, and how GE legend Jack Welch ties into it.

• Warren Buffett blasted earnings manipulation as "disgusting" and "one of the shames of capitalism."
• Bosses have used restructuring charges, asset sales, and revaluations to hit Wall Street's numbers.
• Former GE CEO Jack Welch specialized in using legal but creative accounting to beat forecasts.

Warren Buffett called out executives who manipulate their companies' earnings in his latest shareholder letter. Look no further than Jack Welch, the late CEO of General Electric, for insights into the legal but controversial practice.