Ep. 941: Trend Following Perspectives with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Role of Leverage in Investing
Berkshire Hathaway uses leverage in two ways. For every dollar of equity capital, he will then invest in 1.6 dollars of companies. Another way to see that he's using leverage is you remember I mentioned the performance of his portfolio publicly traded stocks. We could look at the volatility, the risk of that strategy and then we can look at the risk or the volatility of Berkshire Hathaway stock.
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