Using Leverage or Option Contract to Speculative Stock

(May 5, 1997) Warren #Buffett advises investors to stick with the ownership of the business. While Long Term Equity Anticipation Security (LEAP) allows one to control a position with minimal amount of money, LEAP requires the underlying stock moves to the right direction in a short period of time. In addition, Warren Buffett says that LEAP or speculative instrument takes the investors eyes off the value of the investment, and he does not advises for it.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog at WordPress.com.

Up ↑

%d bloggers like this: