Signature Move1 book · 3 highlights
Davis Sr: Margin as Focus Fuel Not Just Leverage
Books Teaching This Pattern
Evidence
The Davis Dynasty
John Rothchild · 3 highlights
"He borrowed roughly half the market value of his portfolio,"
"Also, by raising the stakes on his investing, margin kept him focused.""
"The market value of Davis's assets (the stocks in his portfolio) was 1.5 times greater than his actual capital, reflecting the fact that Davis invested on margin. Merrill Lynch, to compare a pumpkin to a peanut, controlled assets with a market value 20 times greater than its own capital. Large investment houses typically operated much closer to oblivion than Davis did."
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