Business Quote by Warren Buffett
“I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.”
About This Quote
Avoid investing in heavily indebted companies, especially with long‑term debt, because rising rates can hurt profits and cash flow predictability.
In simple terms: High debt makes companies vulnerable to rate hikes.
Key Takeaway
Prefer low‑debt investments.
Themes
finance
risk management
investment
Mood
cautious
pragmatic
Type
advisory
financial
When to use this quote
- stock selection
- portfolio construction
- financial analysis
Key Concepts
leverage
interest rate exposure
Questions to Reflect On
- How do you assess acceptable debt levels?
- What strategies mitigate interest risk?
A Different Perspective
May miss opportunities in well‑managed debt.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)