I'm always amazed whenever you mention that you use leverage.

Yes, but in the most conservative way I can think of : )
Certainly I do not use broker margin loans, which can be called at any time for any or no reason. It definitely won't be a moment that's convenient for the borrower.

I use leverage only when interest rates are cheap, only when the loan is uncallable for at least 2-3 years, only with modest leverage ratios, and only when the valuation level is compelling. A lot of the good result was from "buy-low-sell-high" rather than just leverage. Also a few bucks from expired short puts or expired covered calls or other fancy footwork unrelated to leverage.

And of course, the private equity trick: any return calculation in the IRR family will exclude the portfolio drag from idle cash allocations which may be very high at times, so my IRR-style return on Berkshire by itself is not at all the same as my rate of return on the portfolio which held it.

Is leverage bad anyway? Maybe. There's evidence that consuming zero alcohol is the healthy choice, and I can't prudently recommend otherwise. I myself am not teetotal, but I like to think of myself as a responsible drinker rather than a lush. One must decide one's own best spot on the risk/reward curve, and stay at least a bit towards the conservative side of that line.

Jim

Hmmm, maybe a nice glass of Burgundy this evening...