Today’s 5 Minute Podcast Covers The Following Topics.
- Warren Buffett’s secret on getting rich is finally revealed.
- Examples and what does it have to do with today’s market.
- Why is it so difficult to buy low and sell high.
- When will the bear market start?
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Warning: Warren Buffett Shares His Secret On Getting Rich
While Warren does leverage his empire, he does not leverage his stock purchases. He is not buying on margin. He is borrowing on the strength of his massive operating assets. Unilke somone that borrows on margin that needs the stocks they are buying to use as collateral for the margin loan, Warren borrows on the basis of his operating companies. The risk profile is entirely different.
True, he doesn’t really borrow. He uses his insurance float to buy. That float has a cost, but even that can be pushed into a negative territory if the insurance companies are run properly. Just a smart setup on his part.