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.


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