How Berkshire Borrows Low And Invests Cheap

One of Warren Buffett's most impressive qualities is his ability to allocate capital effectively to the most desirable investment opportunities.

This is not just the case with stocks and shares. The billionaire investor has an excellent track record of allocating capital across the capital structure, particularly in preferred stock and equity securities, which provide capital upside as well as guaranteed income.

In recent years, the Oracle of Omaha has also been using another strategy in an attempt to improve Berkshire Hathaway's overall performance.

Boosting returns with low-cost debt

Until this year, interest rates have been downward trend since 2008. This has allowed companies to borrow vast amounts of money at record low-interest rates, as investors have struggled to find attractive opportunities in the bond...