Investing is like planting seeds in a garden with the hope that they will grow into healthy plants over time. When you invest, you're putting your money into things like stocks, bonds, real estate, or other assets, hoping they will increase in value in the future.
When it comes to investment strategies, leveraged investing stands out as a method that offers the potential for amplified returns, although with increased risk. This strategy involves using borrowed funds to magnify the scope of your investments, allowing you to control larger assets with a smaller initial outlay of your own capital. While leveraged investing can enhance profits when executed judiciously, it also heightens the exposure to losses if the market moves unfavourably.
Case study:
Debunking Warren Buffett’s ingenious Japanese bet
When we talk about superstar investors, one name stands out is Warren Buffett. One of his standout moves is investing in Japan. But what exactly was his move. Let's have a look:
On his 90th birthday in 2020, Berkshire Hathaway announced a significant move, the acquisition of more than a 5 per cent stake in five prominent Japanese trading companies: Itochu, Mitsui, Mitsubishi, Marubeni, and Sumitomo. What made this investment particularly intriguing was Buffett's unconventional approach – he didn’t use any of his own capital for this venture.
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How To Invest In An Ageing Bull Market
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Sectoral Gains Make A Mark
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