Holding Companies' Leverage

Discussion in 'Trading' started by Helix404, Sep 30, 2020.

  1. Helix404

    Helix404

    Do holding companies like Berkshire Hathaway able to use leverage like normal investors?
     
  2. Yes. They can by lending money, unlike investors they do mostly not rely on margin loans by a broker.
     
  3. He can also use the insurance float from the many insurance companies he owns.

    I don't believe he buys stocks with leverage, or invests in any leveraged financial instruments like futures, options, Forex, etc.

    Remember that Berkshire Hathaway is primarily a conglomerate that owns private companies. Stock investing is not his #1 thing.