Source: Shutterstock Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘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 United States Steel Corporation ( NYSE:X ) makes use of debt. But is this debt a concern to shareholders? Why Does Debt Bring Risk?
Debt and other liabilities become risky […]
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