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How Berkshire Hathaway Uses Leverage to Increase Risk
Berkshire Hathaway is using leverage to a degree that perhaps the novice investor might not understand, but obviously he's doing it in a very smart way. He speaks quite negatively about leverage often and certainly the rest of leverage. 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 publicly traded stocks.