Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that GAIL (India) Limited (NSE:GAIL) does use debt in its business. But should shareholders be worried about its use of debt? Why Does Debt Bring Risk? Debt and other…
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