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Buffett's Alpha: http://docs.lhpedersen.com/BuffettsAlpha.pdf http://docs.lhpedersen.com/BuffettsAlpha.pdf tldr; he was leveraged with good stocks
by abirch 10mo ago
Buffett's Alpha: http://docs.lhpedersen.com/BuffettsAlpha.pdf http://docs.lhpedersen.com/BuffettsAlpha.pdf
tldr; he was leveraged with good stocks
- lifeisstillgood 10mo ago“””Whether it’s socks or stocks, I like buying quality merchandise when it is marked down”””. Buffet, BH annual report 2008
- agobineau 10mo agothis is a very interesting read, thank you for posting you may consider a simple example for yourself: Portfolio $100,000.00 $60k into US Tbills, (3, 5, 10y) $40k into SP500 cash $40k into Sp500 on margin $140k exposure For the portfolio to be wiped out, you would need to have a 50% drawdown in the sp500 which hasn't happened in 90 years, and that assumes in a crash your tbill face value wont soar due to rate cuts