marco molino @marcoml: "Dear Investors, $INTC Seems To..."

Italy

Dear Investors, $INTC (Intel) Seems To Use Debt Quite Sensibly.... The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Intel Corporation makes use of debt. But is this debt a concern to shareholders ? When Is Debt Dangerous ❓❓🤔 Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together ❗❗❗ $SPX500 $NSDQ100 $GOLD $DJ30 $AAPL (Apple) Source : SimplyWallSt Cheers Marco.

Not investment advice. The author may have financial interests in the mentioned instruments.