Buffett avoids companies with excessive debt from "summary" of The Warren Buffett Portfolio by Robert G. Hagstrom
Warren Buffett's investment strategy is centered around finding high-quality companies at attractive prices. One key aspect of Buffett's approach is his aversion to companies burdened with excessive debt. He understands that high levels of debt can severely limit a company's ability to weather economic downturns or unexpected challenges.
Buffett recognizes that companies with excessive debt may struggle to meet their financial obligations, leading to potential bankruptcy or severe financial distress. In such situations, shareholders are often left with little to no value in their investments. Buffett prefers to avoid this risk by focusing on companies with strong balance sheets and manageable debt levels.
By steering clear of compan...
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