Friday, March 7, 2008

Leveraging thirty-two to one

Author: raj
Category: Finance

Via The Epicurean Dealmaker: Remember the Alamo

  • Do not borrow short and lend long
  • Do not overlever securities which might become illiquid
  • Do not believe your own hype
  • Do stick to your knitting
I’m sorry, but I wouldn’t leverage even a sure thing like Giselle
Bundchen on quaaludes, mojitos, and Spanish Fly thirty-two to one.

Keynes:
The market can stay irrational longer than you can stay solvent.

Or this little beauty, from the pen of George Santayana:

Those who cannot remember the past are condemned to repeat it.



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