How Warren Buffett Has Used Debt And Leverage To Improve His Investment Returns

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Rupert Hargreaves
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Berkshire Hathaway Warren Buffett

Warren Buffett has consistently warned investors that borrowing money to invest is not a sensible strategy. However, while the Oracle of Omaha has tried to put others off from borrowing money to buy equities, in the past, this is a strategy he has used repeatedly to generate better returns. In fact, according to research, leverage is the single biggest reason the billionaire has been able to outperform the market over the long term. According to research conducted by academics, over the past couple of decades, the Oracle has employed a leverage ratio of around 1.25. Investment float Strictly speaking, this…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk