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Originally Posted by mts The concept isn't wrong, in certain cases it can be very appropriate but there is a lot more that goes into it than just getting highly
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Track Member
Join Date: Jun 2009
Location: San Diego
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Why are cash rich tech companies taking on debt right now? 2 reasons - 1. Debt is so cheap they can "make money" on borrowing and putting it to use. 2. Tax reasons because a bulk of their money is offshore But the point is smaller investors shouldn't ignore this historical moment. Locking up cheap debt today in a 0% auto loan, 3% mortgage, or low interest business loan creates the opportunity to generate wealth. Of course there are no guarantees in life. There are no guarantees that if the economy collapses that a pile of cash will be worth more than toilet paper either.
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2014 F150 Raptor, 2014 Mazda 3, 2015 Nissan GT-R Last edited by MMC Racing; 05-23-2013 at 10:55 AM. |
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