No. of Recommendations: 13
Number 7 about using debt may also require revision, given what BRK is doing in Japan.
No need to worry about this one.
Berkshire's leverage is way lower than it was in the past. Top level leverage (total assets over total liabilities) averaged 2.2 from 2013-18, and it's 1.7 now. That doesn't sound like much, but they'd have to borrow another $235bn to get back to the old normal leverage level.
The only reason for the yen debt to buy the Japanese position was because it was free (interest rate below inflation), and currency matched so that if the business value ever fell along with a falling yen, it would be made up for as a gain on the shrinking yen debt. (sounds like magic, but Berkshire misses out on the opportunity for the ex-US position to offer any protection against any potential fall in the US dollar)
Jim
