Basics: Leverage - Increasing your risk and your returns

Equity Mates Investing Podcast · Nov 3, 2019 · 30m

One of the biggest takeaways from our Sydney live show was the potential of investing with leverage. In a night where there was some healthy disagreement amongst the panel (in particular on investing v trading, and on short-selling) there was general agreement that leverage can be a useful tool for young people investing with a long time horizon. Leverage is simply the act of investing with someone else's money. It increases risk, but it also increases potential returns. The best example of investing with leverage, that most people are familiar with, is a mortgage. When buying a house you put…