> Warren Buffett Blog: Buffett issues warning for purchases of Berkshire using leverage

Monday, March 30, 2015

Buffett issues warning for purchases of Berkshire using leverage


Berkshire shares should not be purchased with borrowed money. 

There have been three times since 1965 when our stock has fallen about 50% from its high point. Someday, something close to this kind of drop will happen again, and no one knows when. Berkshire will almost certainly be a satisfactory holding for investors. But it could well be a disastrous choice for speculators employing leverage.