… another man’s poison!

To some people, it seems that I promote high-risk strategies. For example, long-time reader, Josh says:

I wondered over to your blog to see what’s new and after reading a few posts I realized why I don’t visit anymore, and it’s because your articles are drenched in pro-debt/leveraged strategies. This is something I don’t agree with and don’t practice. I do understand the mathematical ramifications of using debt to leverage yourself, it’s just something I plan to do without.

Firstly, what Josh is saying isn’t quite true …

… in fact, I don’t recommend debt to anybody. What I have said is that I don’t believe in the anti-debt lobby.

There’s nothing evil about debt per se, it’s if/how/when you apply it that counts.

For example, I have variously had:

a) a little debt: on my various buy/hold properties

b) a lot of debt: in my finance company (for a finance company, cash is like stock … you need as much of it on hand as possible)

c) no debt: all of my other businesses were ‘bootstrapped’ and self-funded

I should point out that Josh is a stock investor; he has made a small fortune (turned a couple of $k into one $m or so while still at college) buying pharmaceutical ‘penny stocks’ … I wonder how many people would consider that risky?

One man’s ‘sensible investment strategy’ is surely another man’s poison 😉

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4 thoughts on “… another man’s poison!

  1. I’m completely behind you. Penny Stocks can be as bad or worse than any financial strategy …For the most part, I don’t think people do enough research when investing in stocks. I believe penny stock investing requires much closer scrutiny…

  2. There is much more literature out there on the risks associated with penny stocks vs. buying real estate….

    To each their own!

  3. You know the old saying…..its not so much the investment that’s risky but the investor.Lack of knowledge,personality traits and mental heuristics make investors risky.

  4. Dear Josh, where’s you blog that tells us how to make money in penny stocks? Oh you don’t share your advice, and you don’t have the time, or your too good for us. I for one have wandered back here and the message here is still the same. Use debt wisely.

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