SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : MDA - Market Direction Analysis
SPY 672.04-1.7%Nov 13 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Haim R. Branisteanu who wrote (49512)5/5/2000 10:44:00 PM
From: Zeev Hed  Read Replies (2) of 99985
 
Actually, Haim, as a business manager, I think that judicious use of debt is quite wise. Look even at IBM, most of their debt is paying between 4% to 7%, their return on assets is 9%, thus they use other people money to make money. As long as the debt service can be assured even under the worse model of an economic slowdown, ands as long as return on assets is higher than the interest paid for debt, some debt is good, IMHO. Some people call it wise leverage.

I could not say the same about AMZN gargantuan appetite for debt, they may actually go broke if consumers slow down spending.

Zeev
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext