There’s No Margin of Safety When You Buy Using Leverage

Buying stock on margin occurs when you borrow money to purchase securities. It’s called leverage because it magnifies your results in both directions.  Warren Buffett has said “if you’re smart, you don’t need it; if you’re dumb, you shouldn’t use it.” For example, imagine you have $100,000 of your own money to invest but you […]

Sorry to Burst Your Bubble, but This Isn’t 1999

Asset bubbles occur when speculation and emotion drive prices far beyond their fundamental value. With the S&P 500 delivering double-digit gains in 2023, 2024, and 2025, it’s easy to see why some assume we’re in one today.  While every bubble has its own backstory, they all follow a familiar pattern. Here are some of the […]