Berkshire Hathaway uses debt quite sparingly. Even when it does borrow, the company tries to structure its loans on a long-term fixed-rate basis. Adopting a conservative approach, the company will rather reject interesting opportunities than over-leverage its balance sheet. While this policy may have moderated the profits over the years it is the most prudent…
Tag: Warren Buffett
Warren Buffett overturns all the main ideas of modern investment theory
Warren Buffett, alongside Benjamin Graham is considered to be the leading gurus of investment strategy. Though Benjamin Graham pioneered the notion of ‘value investing’, it was Buffett who consolidated the theory through repeated application. The consistency with which Buffett’s portfolio out-performed the average market results does prove beyond doubt the veracity of his ideas. His…