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2008 Financial Resolution #2: Stop Buying Great Deals by Chief Family Officer is an great financial resolution. It reminded me of the ...

Monday, August 17, 2026

I Don't Use Margin for Stock Investments

I never use margin, which is borrowing money to invest for stocks. 

While using margin can turbo charge or amplify gains, it can also quickly eliminate equity if the stock drops, resulting in a margin call which is a request for more funds to meet maintenance requirements or 100% liquidation of the stock or other position.  That is just too much stress and anxiety for me.   A stock falling 20% is enough anxiety for me; I don't need the additional stress of being required to deposit more funds or get liquidated.

I guess I'm never going to  make billions, like Leopold Ashenbrenner.  Then again, I won't get margin called and lose billions either, like what happened in July 2026.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial, stock investment, nor margin use advice. Please consult a professional advisor.

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