
The Impact of Debt
The Memo by Howard Marks
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Debt Impact and Longevity
Debt can significantly impact longevity and resilience, as highlighted by the example of businesses in Japan that have been operating for centuries. These long-lasting businesses, called shinisei, maintain their durability by holding cash and avoiding debt. It is evident that being indebted increases the likelihood of facing difficulties, and assets not used as collateral for loans are protected from foreclosure or repossession.
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