Tag Archives: Sheet

Warren Buffett famously said, ‘Volatility is far from synonymous with risk.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Ford Motor Company (NYSE:F) does have debt on its balance sheet. But is this debt a concern to shareholders? When Is Debt Dangerous? Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst… Source link

The external fund manager backed by Berkshire Hathaway’s Charlie Munger, Li Lu, makes no bones about it when he says ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Ford Motor Company (NYSE:F) does have debt on its balance sheet. But is this debt a concern to shareholders? When Is… Source link