How Debt Can Sink Your Investment

In my years as an investor, if I had to point at the single most destructive aspect to an investor's portfolio, I would point to debt. More failures, blowups and capital wipeouts have occurred as a result of debt than for any other reason I can think of. And the losses are not always because an investor employed too much leverage. There's another danger that many investors fall victim to, and the results can be just as horrific.

Rather than taking on their own leverage, many investors do the next worst thing and invest in highly indebted companies. My simple advice to 95% of investors out there is to avoid companies that have too much debt. No ifs, and or buts: Simply stop investing in companies that have too much debt....500 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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