Many tried to emulate him, not forgetting the part about taking on some margin debt.
The level of margin debt in relation to the total valuation of the Big Board stays modest.
The Federal Reserve Board requires long equity margin accounts maintain a balance of 50% equity, 50% margin debt.
Meanwhile, margin debt, or the amount of money that investors have borrowed to invest in stocks, is climbing.
And, on top of the spike in margin debt by investors, new research by market participants highlights the dangers of playing the market with borrowed money.
Margin debt, a seldom-referenced indicator of confidence and speculation has contracted on a yearly percentage change as much as in the bear markets of '74, '82, '87 and '01.
When equity prices decline steadily as they have been these last few days, margin accounts get restricted and in the worst case, if cash or stock is not deposited to meet margin requirements, sales can be forced by the brokers to pay for margin debt used to buy the stock.
Russia is poor enough and has stable enough state finances, it has by a very wide margin the smallest sovereign debt burden of any large country, that a government that is truly committed to achieving 6% GDP growth should be able to achieve that goal, at least for a good 5 or 6 years.
Also, government debt itself is a currency negative on the margin owing to market fear that the government might devalue its way out of it.
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Even when I diversified into property and later into multinational businesses, I was still vigilant about maintaining a healthy debt to equity ratio, well within the margin of errors.
Analysts partial to Toro emphasize its solid history of growth and margin improvement and its low level of debt.
Free of long-term debt, Leo Wells says that he has plenty of margin for error.
The third came in 1998 when the long-term capital management debacle and Russia's default sent low-grade bond prices plummeting, crushing high-debt REITs like Criimi Mae and Laser Mortgage Management with margin calls.
Ghosn vowed to put Nissan back in the black within a year and to achieve a 4.5% profit margin before interest and taxes and slash Nissan debt by half in three years.
The enhancement in margin came on account of cost control, reduced bad debt and other factors.
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If a large part of that is debt, to be serviced in good and bad years alike, the margin of safety is slim.
The firm used half the share proceeds to pay back debt to its founding partners and earned in 2006 a slim 12% aftertax margin.
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