Learn to Love Company Debt
Learn to love company debt! Well, up to a point. I see leverage through debt as a brilliant way for companies to create wealth. Most successful businesses use leverage to their advantage. Learn to understand debt and you’ll love it too. Utilities, pipelines, and telecoms are perfect examples of how leverage can be used to the shareholders’ advantage. They operate capital-intensive business models; waiting to finance projects from cash flow would take them years during which their competition …
