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| Topic | Stock Topic 30 |
| red sox 777 06/14/21 1:30:26 PM #391: | Yeah, debt is great with the caveat that you never want to be foreclosed on/margin called. If that happens you are forced to (1) sell your assets at the worst possible time and (2) deleverage at the worst possible time. As long as you avoid that it's a great way to juice your returns. IMO the nice thing about home mortgages is that (1) are generally non-recourse loans, meaning if things come down to it, you can just default, give them the house, and walk away without owing more money, and (2) despite being non-recourse, you can't get margin called as long as you keep making the payments. That is, even if the value of the house goes below the loan balance, they can't foreclose on you as long as you have been making payments on time. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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