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Recent history has shown us that financing equity positions with debt (i.e. leverage) can be... risky. In any event, I consider leverage to be outside the scope
by cltby 6y ago
Recent history has shown us that financing equity positions with debt (i.e. leverage) can be... risky. In any event, I consider leverage to be outside the scope of the parent comment's observation.
- tehlike 6y agowell for wealth tax, you don't need more than a percent or two. It wouldn't be a problem at all. You may not consider leverage, but it's fairly known & well used practice to take loan out of equity. People do it with their stocks as FANG employees. Founders with the wealth could have access to even cheaper loans.