Interesting statement. But, both Magellan and Warren have 40-50% of their portfolio or more in growth stocks. Isn't that correct? Gee, I wonder what happens will happen then if tech stocks go splat. Their portfolios will magically generate positive absolute returns har har.
Making statements like "leverage is a double-edged sword" mean nothing without context so I'm not sure what you mean.
Is a utility company employing significant leverage to invest and maintain the provision of essential services which you rely on to have your lights on? If so, that's necessary and effective.
Is a personal investor using significant amounts of borrowed capital to amplify returns? Probably a bad idea for individual investors for sure. But if it comes down, what does it really matter for companies like Apple and Microsoft? Sure their stocks will go down a lot, but they have AAA ratings and the biggest cash balances among any companies in the world. If anything, they could make strategic or bolt-on acquisitions for cheap while the structural growth story to the cloud, AI usage continues, and they will keep increasing their dividends.
I don't scorn value and defensive stocks. Please don't make lies up and try to read my posts. I bought MQG at $85 and picked up significant amounts of the index at their COVID lows, and I've held JNJ, P&G, and railroad stocks, largely ignored by most Australian investors because they're "boring", for a very long time.
Feel free to go with the odds which I don't know what you're referring to. If it's MFG stock rebounding based on fantastical theories that Hamish's core strategy will rebound, then I hope your fairy tale comes true. But never will I refer to MFG as a value stock if the value is inherently linked on one man's ability to beat markets. That's gambling.
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