Ep. 977: Trend Following Kick Ass Reminder with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Back Testing
Berkshire Hathaway uses leverage in two ways. For every dollar of equity capital, he will then invest in 1.6 dollars of companies. The volatility of Berkshire Hathaway stock is bigger than the volatility of his publicly traded stocks. If you add leverage to a portfolio then you will tend to increase the risk. It's just a tool and he's using the tool wisely.
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