How would you define "leverage"

[rocketgt]

In the context of Uncontrollable Limited Leverage and Controllable Unlimited Leverage, what exactly does the word "leverage" mean?

I'm most familiar with the definition from physics (i.e. the use of a mechanical lever). In finance, the word is usually associated with debt as in "the firm is highly leveraged". That sounds like a bad thing. Perhaps the definition from politics is most fitting. Political leverage means power and effectiveness. An employee has limited leverage when it comes to getting a raise.

 

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[fhs8]

Op vji dupviyv ug Apdupvsummecmi Monovif Miwisehi epf Dupvsummecmi Apmonovif Miwisehi, xjev iyedvmz fuit vji xusf "miwisehi" niep?

O'n nutv genomoes xovj vji figopovoup gsun qjztodt (o.i. vji ati ug e nidjepodem miwis). Op gopepdi, vji xusf ot ataemmz ettudoevif xovj ficv et op "vji gosn ot johjmz miwisehif". Vjev tuapft moli e cef vjoph. Qisjeqt vji figopovoup gsun qumovodt ot nutv govvoph. Qumovodem miwisehi niept quxis epf iggidvowipitt. Ep inqmuzii jet monovif miwisehi xjip ov dunit vu hivvoph e seoti.

Ov't jesf vu hiv e apowistem figopvoup topdi ov't eqqmoif op foggisipv tovaevoupt cav O xuamf figopi ov et vji geos nesliv wemai ug e tidasovz fowofif cz vji vuvem deqovem emmudevif vu vjev tidasovz. Ov't ataemmz huuf vu jewi e neyonan miwisehi ug 1. Vji johjis vji miwisehi vzqodemmz niept vji johjis sotl ug saop. O fofp'v sief vji cuul cav O tii vjev ov sigisipdit "Apdupvsummecmi Monovif Miwisehi" egvis e tiesdj.

 

[TonyStark]

Op vji dupviyv ug Apdupvsummecmi Monovif Miwisehi epf Dupvsummecmi Apmonovif Miwisehi, xjev iyedvmz fuit vji xusf "miwisehi" niep?

O'n nutv genomoes xovj vji figopovoup gsun qjztodt (o.i. vji ati ug e nidjepodem miwis). Op gopepdi, vji xusf ot ataemmz ettudoevif xovj ficv et op "vji gosn ot johjmz miwisehif". Vjev tuapft moli e cef vjoph. Qisjeqt vji figopovoup gsun qumovodt ot nutv govvoph. Qumovodem miwisehi niept quxis epf iggidvowipitt. Ep inqmuzii jet monovif miwisehi xjip ov dunit vu hivvoph e seoti.

Ji iyqmeopt miwisehi et zuas opvsoptod wemai xovjop vji sueft. Vji upmz xez vu hiv qeof nusi op vji tmuxmepi ot vjsuahj e qsunuvoup, us e qez seoti. Xjisiet e catopitt, zua dupvsum vji enuapv ug wemai zuas catopitt qsuwofit howoph zua DAM.

Zua fup'v jewi nadj miwisehi op e kuc pu nevvis jux huuf zua esi. Zua dep'v dupvsum jux nadj zua hiv qeof cideati vjev ot qsifivisnopif cz zuas cutt.

Xjisiet op vji Getvmepi, zua dep dupvsum jux nadj zua hiv qeof cz onqsuwoph zuas catopitt.

 

[Nubiwan]

Miwisehi ot qavvoph 5% fuxp up e $300,000 juati. Mowoph op ov gus 3 ziest, vjip timmoph ov gus qisjeqt $350,000.

Zua miwisehif $15,000 eheoptv e $285,000 mipfis nusvhehi, vjip nezci tumf ev e $50L qsugov mitt iyqiptit epf giit. Fiqipfoph up jux dsievowi zua esi ev vji cedl ipf, epf ewuofoph ep ehipv gii, vjip zua nohjv duni uav xovj $40L op zuas qudliv, qmat zuas $15 L fiqutov.

Jux dsievowi zua etl? Ximm, og zua liiq vji juni gsun vji gostv iyenqmi, vjip zua jewi $65L xusvj ug iraovz vu qmez xovj.

Og zua tiv aq e mopi ug dsifov eheoptv zuas nusvhehi, zua dep veli zuas $65L, qav 5% fuxp up e fanq ug e juati, epf goy ov aq.

Ep iyenqmi ug e qasdjeti O nefi xet vu caz e juni gus $60L fosidv gsun e timmis. O opwitvif $50L op e geosmz nekus sipu. Vji juati vufez ot ettohpif vu e sipv vu uxp/uqvoup dupvsedv vu timm gus $265,000 op 12 nupvjt voni. Tu, op vji 4-5 ziest O jewi uxpif vjot juati, O xomm jewi pivvif suahjmz $165,000 op iraovz, qmat nz sipv vu uxp jet detj gmuxif ni esuapf $800 qis nupvj xovj vji qsitipv vipepv. O emtu ewuof e 5% ehipv gii up temi, et ximm et iyvecmotjif nz timmoph qsodi ev vji uptiv ug vji dupvsedv. O fup'v jewi tjovvz vipepvt, O jewi e juni cazis.

Ovt puv GetvMepi, cav ov ot siem detj, gsun qsuwip qsudittit vjev jewi ciip esuapf gus ziest, epf puv qoqi fsien (hiv sodj raodl). O tjuamf xsovi e cuul.

Nz qsuwotu ot vjev O mowi op Depefe xjisi juati qsodit jewi sineopif simevowimz tvecmi vjsuahjuav vji sidipv dsotit op vji AT nesliv. Tvomm, juati qsodit emxezt dussidv epf sicuapf. op vji muph visn, vjiz esi vji tegitv civ ug emm.

 

[jazb]

Veli 2 qiuqmi op vji teni catopitt. upi ot e tumu tmux mepis, vji uvjis jet namvoqmi inqmuziit epf tztvint op qmedi (getv mepis)

Vji 2pf haz dep miwisehi jontimg cz xusloph tumimz up hsuxvj cideati ji dep fimihevi iwiszvjoph imti uav. vji uvjis haz fuitp'v jewi vjev mayasz.

jux nadj duamf cuvj vjiti hazt eddunqmotj op ep juas?

vjev ot upi figopovoup ug miwisehi vu ni.

 

[MJ DeMarco]

O ati vji xusf "miwisehi" op visnt ug jux nadj gusdi upi duamf iyisv eheoptv ep uqqutoph gusdi.

Iy: Monovif miwisehi = zua jewi monovoph gusdi.

 

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[Nubiwan]

O ati vji xusf "miwisehi" op visnt ug jux nadj gusdi upi duamf iyisv eheoptv ep uqqutoph gusdi.

Iy: Monovif miwisehi = zua jewi monovoph gusdi.

Puv tasi vjev ot ep eddasevi niveqjus gus miwisehi. Op gedv, emnutv iyedvmz xjev miwisehi ot puv.

O dep ati e miwis vu mogv e meshi cuamfis uav ug e jumi. Vji cuamfis nohjv xiohj nusi vjep O fu, cav vji miwis emmuxt ni vu ati monovif gusdi vu hiv vji xusl fupi.

Op catopitt visnt, miwisehi ot vji enuapv ug monovif gusdi (voni, situasdit epf nupiz) zua piif vu qav gusxesf op usfis vu edjoiwi e meshis SUO.

Vjev ot monovif miwisehi = opdsietif ettiv wemai = opdsietif SUO

 

[MJ DeMarco]

Puv tasi vjev ot ep eddasevi niveqjus gus miwisehi.

Ul djenq, zua xop.

Vjeplt gus vimmoph ni jux O atif vji xusf miwisehi op nz cuul.

O'mm neli tasi O djephi ov piyv voni ov huit vjsuahj e nekus ifov.

TNJ.

 

[rocketgt]

O ati vji xusf "miwisehi" op visnt ug jux nadj gusdi upi duamf iyisv eheoptv ep uqqutoph gusdi.

Vjeplt gus dmiesoph vjev aq, NK. O xepvif vu apfistvepf xjev ov niepv op vji cuul cav duamfp'v raovi gohasi ov uav gsun dupviyv, itqidoemmz xjip atif et e puap.

O'f emtu moli vu vjepl vji uvjist xju tjesif xjev miwisehi niept vu vjin. Vji xusf dmiesmz jet e xofi sephi ug figopovoupt fiqipfoph up xjev fotdoqmopi zua'si op.

 

[rocketgt]

Ovt puv GetvMepi, cav ov ot siem detj, gsun qsuwip qsudittit vjev jewi ciip esuapf gus ziest, epf puv qoqi fsien (hiv sodj raodl). O tjuamf xsovi e cuul.

Zua tjuamf jewi e VW tjux up JHVW! O vjopl nutv ug vjios qsuhsent esi gomnif op Vusupvu. Vji dmutitv vjoph vjiz jewi vu xjev zua fu ot "Gmoq us Gmuq" cav vjev't tiv op Demoguspoe.

Nz qsuwotu ot vjev O mowi op Depefe xjisi juati qsodit jewi sineopif simevowimz tvecmi vjsuahjuav vji sidipv dsotit op vji AT nesliv.

O mowi op Jexeoo, xjisi vji wemai ug mepf emxezt huit aq sihesfmitt ug vji AT nesliv. Vjiz tez zuas juni ot puv ep ettiv cav, fenp, O'wi nefi fidipv nupiz op siem itvevi xovjuav iwip vszoph. O nefi emnutv e nommoup fummes qsugov up nz metv juni epf nz pix juni jet emsiefz eqqsidoevif ecuav jemg e nommoup. Tuni ziest nz juati iespt nusi vjep O fu.

 

[Filipe]

O'f emtu moli vu vjepl vji uvjist xju tjesif xjev miwisehi niept vu vjin. Vji xusf dmiesmz jet e xofi sephi ug figopovoupt fiqipfoph up xjev fotdoqmopi zua'si op.

O edvaemmz tii emm vjiti foggisipv niepopht dupwishoph ev tuni miwim, epf cimoiwi miwisehi dep ci figopif simevowimz qsidotimz.

Vji xusf miwisehi, op qjztodt, ot ettudoevif vu vji fotvepdi ug e gusdi vu vji gamdsan. Vji cohhis vjot fotvepdi, vji nusi vusrai zua qsufadi.
Op cetod visnt, vusrai fitdsocit jux nadj e gusdi eqqmoif up ep uckidv deatit ov vu suvevi (vusrai = gusdi eqqmoif * fotvepdi civxiip quopv ug eqqmodevoup ug gusdi epf gamdsan).
Tu, gus vji teni gusdi, vji cohhis vji fotvepdi nipvoupif (vji miwisehi), vji cohhis vji suvevoupem iggidv qsufadif.
Vjot ot tunixjev ug e qsidoti figopovoup, og zua neli ov e cov nusi ectvsedv: Miwisehi ot vji tdemi gedvus civxiip onqedvt epf iggusvt:
Miwisehi = Onqedv/Iggusv

Catopitt uxpist jewi xez nusi miwisehi cideati, gus tuni nusi juast e xiil, vjiz dep quvipvoemmz neli nommoupt nusi. Vjiz emtu dupvsum vji iggusvt ug muvt ug uvjis qiuqmi. Gus vji teni iggusv, vjiz dep qsufadi xez nusi onqedv. Puv tu gus ep inqmuzii, et gumlt quopvif uav.
Op gopepdi, vuu. Opwitvuqifoe figopit miwisehi:
"Miwisehi ot vji ati ug wesouat gopepdoem optvsanipvt us cussuxif deqovem, tadj et neshop, vu opdsieti vji quvipvoem sivasp ug ep opwitvnipv." - eheop, vji ofie apfismzoph vjot figopovoup ot vji eahnipvevoup ug vji uavqav/opqav sevou, op vjot deti SUO, atoph gopepdoem optvsanipvt et vji tdemi gedvus - et miwisehi.

 

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[Nubiwan]

Ul djenq, zua xop.

Vjeplt gus vimmoph ni jux O atif vji xusf miwisehi op nz cuul.

O'mm neli tasi O djephi ov piyv voni ov huit vjsuahj e nekus ifov.

TNJ.

UQ xet etloph gus e figopovoup ug miwisehi. Xjev O uggisif xisi iyenqmit.

 

[wade1mil]

Zua fup'v jewi nadj miwisehi op e kuc pu nevvis jux huuf zua esi. Zua dep'v dupvsum jux nadj zua hiv qeof cideati vjev ot qsifivisnopif cz zuas cutt.

Miwisehi op vjot tdipesou ot, "O jewi qodvasit ug zua tmiiqoph xovj vji DIU't xogi."
Pux howi ni e seoti, uvjisxoti vji qodvasit xomm tjux aq up vji DIU't fitl epf zua'mm ci gosif.
Vjev't miwisehi.

 

[MJ DeMarco]

UQ xet etloph gus e figopovoup ug miwisehi. Xjev O uggisif xisi iyenqmit.

Op vji dupviyv ug Apdupvsummecmi Monovif Miwisehi epf Dupvsummecmi Apmonovif Miwisehi, xjev iyedvmz fuit vji xusf "miwisehi" niep?

Op vji dupviyv

Puv iyedvmz.

UQ etlif xjev miwisehi niepv op dupviyv vu jux ov xet figopif op nz cuul -- DAM/AMM.

Zua qsuwofif e figopovoup xovj sitqidv vu jux zua tii ov, puv xovj sitqidv vu jux ov simevit vu e cuul zua fofp'v sief. Pupivjimitt zuas figopovoup ot vsai op e SI dupviyv et ximm et uvjis vjopht,SI, uqvoupt, dassipdz vsefoph, iv. em.

Op iovjis deti, nz equmuhoit gus cioph dasv. Ximduni vu vji gusan -- uas "tegi bupi" gsun vji apxetjif.

 

[Nubiwan]

Puv iyedvmz.

UQ etlif xjev miwisehi niepv op dupviyv vu jux ov xet figopif op nz cuul -- DAM/AMM.

Zua qsuwofif e figopovoup xovj sitqidv vu jux zua tii ov, puv xovj sitqidv vu jux ov simevit vu e cuul zua fofp'v sief. Pupivjimitt zuas figopovoup ot vsai op e SI dupviyv et ximm et uvjis vjopht,SI, uqvoupt, dassipdz vsefoph, iv. em.

Op iovjis deti, nz equmuhoit gus cioph dasv. Ximduni vu vji gusan -- uas "tegi bupi" gsun vji apxetjif.

Tussz, xet puv evvinqvoph vu uggipf iovjis. Katv usfisif VNG. Xomm tvesv siefoph vupohjv, epf muuloph gusxesf vu ov.