The American financial giant, Warren Buffet advises investors, not to borrow for the purpose of investing. In his annual letter written to the investors, he describes the hazards of debt and leverage.
Borrowed money is not a brilliant idea to invest in the stock market, since no one is cable of forecasting the fluctuations of the market shares, he observes. In his letter he notes “There is simply no telling how far stocks can fall in a short period.”
According to his business sense, investing in equities over bonds is a better decision. The reason he puts forward is, investing in equities is less riskier compared to investing in bonds.
According to Buffet, the days are far gone when investing in bonds were low risk.