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Technology Stocks : Warren Buffett
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To: Tulvio Durand who wrote ()3/28/1997 2:42:00 AM
From: Frank Yashar   of 82
 
Does Buffet use leverage to get his fantastic returns?

A friend told me that Buffet gets his amazing returns, something
like 27% annual return compounded for 3 or 4 decades, because
he uses the leverage that he has available from the funds in
his insurance companies. That is how he is able to consistently
get such extrodinary returns without investing in companies in high
growth sectors like high tech. Does anybody know anything about
this? Is there any truth to it? Can anybody elaborate on this if
it is true that it is one of the basis of his excellent returns.

I did hear about a bond offering he did a long time ago, and the
money he raised from that was probably at a very low interest rate,
probably 5-8%, I'd guess. An investment return of even 10% could
result in a very high net return due to the high leverage obtained
with the funds.

But there are probably people out there that know
alot more about what did occur and how Buffet made his superb
returns.
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