I have a few more comments on a similar topic that I'll post next week on Buffett, and specifically on his famous «guarantee» that he could make 50 % per year investing small sums — a result that he in fact achieved for a number of years by using an investment strategy that I think is mostly
misunderstood by most investors.
This was exasperated recently when I was discussing the case of how
most investors misunderstand how it can actually be good over the long - run to change a company's capitalization structure to replace equity with debt
by borrowing funds on a long - term, low - cost, fixed - rate basis to repurchase stock, lowering the total count of outstanding shares.