3 ms·
Yet Warren Buffet has made most of his wealth through either normal leveraging or leveraging using his insurance companies' float. https://www.nber.org/papers/w
by barbegal 6y ago
Yet Warren Buffet has made most of his wealth through either normal leveraging or leveraging using his insurance companies' float. https://www.nber.org/papers/w19681 https://www.nber.org/papers/w19681
- mcnamaratw 6y agoSure, BH uses some leverage. But much less than 5:1 unless things have changed a lot in the past few years. [Or unless I'm worse than I realize at figuring out balance sheets, which is certainly possible.]
- gowld 6y ago> Yet The very first paragraph says "we estimate that Buffett's leverage is about 1.6-to-1 on average." Pretty close to 1.4