Leverage (borrowed money) is a simple strategy so you can use a small amount of your capital (combined with the borrowed cash) to make a larger investment. It’s a convenient financing tool, but it won’t turn a bad investment into a good one. Leverage simply magnifies the outcome—good or bad.
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Leverage Is a Powerful Tool
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Leverage (borrowed money) is a simple strategy so you can use a small amount of your capital (combined with the borrowed cash) to make a larger investment. It’s a convenient financing tool, but it won’t turn a bad investment into a good one. Leverage simply magnifies the outcome—good or bad.