It is quite strange that academic fellows still advocate leverage investing, even though one of the greatest economists Paul Samuelson declared against it and Warren Buffett was mentioned.
Obviously, I think professor Samuelson was right and so is Warren Buffett. This kind of stories in investment always happen. These academic fellows once again act as "falling victim to the 'law of large numbers' fallacy". They are wrong simply because they use short term debt to "invest" long term or uncertain time period realized asset. That is crazy. Quite different from buying a house with leverage, debt of stock leverage is quite uncertain and liquidation time is always short than those fellows expect. No long term financial tools are present for ordinary stock leverage.
We need to remember Mr. Buffett's advice: never leverage.
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