Discourse on Leverage

Rick had a margin call, and at the time Buffett bought many of the Berkshire Hathaway shares Rick owned at $40 per share. Charlie and Buffett knew they would become very rich and were in no hurry, but Rick was. Even if you only slightly outperform the average investor, and as long as you don't use leverage, it's virtually impossible not to become rich over a lifetime.

Do you want to be known as the worst but be the best, or be known as the best but be the worst? => Bill Hwang

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Topics: Warren Buffett,Leverage,-p mohnish pabrai
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