I think this refers to leverage introducing a risk of ruin with volatility where it wouldn’t otherwise exist. If you’re unlevered and have a long time horizon,

I think this refers to leverage introducing a risk of ruin with volatility where it wouldn’t otherwise exist. If you’re unlevered and have a long time horizon, volatility essentially doesn’t matter. All that matters in the long term is the annual rate of return. If you’re levered, however, a sufficiently volatile underlying will cause you to get liquidated which sets your return to zero.