Avoid high levels of debt in a company from "summary" of Buffettology by Mary Buffett,David Clark
High levels of debt can be a significant risk factor for any company. When a company has excessive debt, it may struggle to make necessary payments and meet financial obligations. This can lead to financial distress and even bankruptcy if the debt burden becomes too great. Warren Buffett, the legendary investor, has long emphasized the importance of avoiding high levels of debt in a company. He believes that companies with too much debt are more vulnerable to economic downturns and may not be able to weather unexpected challenges. In his book 'Buffettology,' Mary Buffett and David Clark explain that Buffett prefers to invest in companies that have strong balan...
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