Looking for value in the overlooked margins of the market.
Do you invest with leverage?It's an area where I've had a "counter-revelation". There are very few people who use leverage modestly and responsibly. It always goes to extremes — abstaining completely, even 5% leverage, or wildly gambling. Rationally, using 5% leverage is entirely safe. Using 20% leverage is probably safe. Yet, it's interesting how there's little middle ground on this topic…I don't use leverage today because of the market's elevated level. But in hindsight, I should've used it in 2009. If we see a more inflationary environment in the future, modest leverage could be very advantageous.
You sound like Whitney Tilson...good interview
Nate - Thanks for the link. Hearing your voice puts color into your blog. Keep up the great work.