How Warren Buffett Has Used Borrowed Money To Increase Investment Returns

Rupert Hargreaves

Published onJuly 14, 2021

Warren Buffett likes to say he has never borrowed, nor ever will borrow, a lot of money.

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For example, in 1991, Buffett was asked by a Notre Dame student about Donald Trump's money troubles. He said Trump failed because he borrowed too much:

"I've seen more people fail because of liquor and leverage – leverage being borrowed money. Donald Trump failed because of leverage. He simply got infatuated with how much money he could borrow, and he did not give enough thought to how much money he could pay back."

Buffett also told students that he's avoided these problems throughout his career...

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Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha

How Warren Buffett Has Used Borrowed Money To Increase Investment Returns

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