Use leverage cautiously from "summary" of The Dao of Capital by Mark Spitznagel
Leverage is a powerful tool that can magnify gains when used correctly, but it can also amplify losses when used recklessly. It is a double-edged sword that must be wielded with caution and prudence. By borrowing money to invest, an investor can potentially increase their returns, but they also increase the risk of losing more than their initial investment. When using leverage, one must consider the potential downside and be prepared for adverse outcomes. It is important to have a clear understanding of the ris...Similar Posts
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