On a balance a balance sheet, a dollar of equity capital, leveraged by debt, is a very different proposition from the plain dollar, unleveraged. By the borrowing, a company can expand its assets and therefore its sales and earnings. A leveraged company is a company on stilts: larger and apparently more formidable than its conservatively financed rivals, but also at risk in a high wind. (James Grant Jan. 12, 1987)
I have not had the time to view these. Let me know if you find any particularly interesting. ….More videos to be posted.
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