Warren Buffett: Absent leverage

“Really, the only way a smart person that’s reasonably disciplined in how they look at investments can get in trouble is through leverage. I mean, if somebody else can pull the plug on you during the worst moment of some kind of general financial disaster, you go broke…. But absent leverage, and absent just kind of going crazy in terms of valuation on things, the world won’t hurt you over time in securities. And…the financial cataclysms — they don’t need to do you in. If you have any more money during periods like that, you buy.” –Warren Buffett.