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Ep. 373: Lasse Pedersen Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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How Berkshire Hathaway Uses Leverage to Increase Risk

Berkshire Hathaway is using leverage to a degree that perhaps the novice investor might not understand, but obviously he's doing it in a very smart way. He speaks quite negatively about leverage often and certainly the rest are leverage. For every dollar of equity capital, he will then invest in 1.6 dollars of companies. If you add leverage to a portfolio then you will tend to increase the risk. It's just a tool and he's using the tool wisely.

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