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IIRC Warren Buffett doesn't allow the independently-run businesses that are part of his conglomerate to borrow from the banks. If they want to borrow money, he
by pdm55 14y ago
IIRC Warren Buffett doesn't allow the independently-run businesses that are part of his conglomerate to borrow from the banks. If they want to borrow money, he will lend it to them at 15%. So I guess that is a yardstick to judge oneself against. Could I repay a loan where the interest rate is 15%?
- Seanambers 14y agoIt's a great way to prevent money from being wasted on projects that have a low return on investment(IRR-internal rate of return). In other words only the projects that generate a sufficiently large return are feasible investments. Buffet does not like to waste resources,time and money :)