Skip to main content
No. of Recommendations: 0
Hello fellow fools. I have come to a quandry. I am confused by listening to the experts, Buffet, Lynch, Neff and Tom and David in regard to cash flow and debt.

When is taking on an enormous amount of debt okay outside of rule breakers? According to the experts the answer is never but yet I see a lot of people still think that SBC, LU, and ISCA are all great companies. According to the cash to debt ratio these companies should all suffer in a rising interest rate environment. Am I missing something. Please explain. ALso another rule maker Phizer has added quite a bit so when is too much debt too much? If anyone can relate this to the annual report on ISCA that would be most helpful since that is where my confusion all started. I understand they want to own all the tracks but did they jump in too much too quickly or no? Thank you for the help.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.