Väärtpaberite teejuht - Villu Zirnask

Although a new financial system is emerging amidst the current turbulent conditions—one whose contours we cannot yet predict—certain fundamental principles remain unchanged. Bank loans and direct investments are not the only ways for a company to raise capital. Stock exchanges and bond markets will eventually recover, and raising funds from the open market will once again become both feasible and sensible. However, as the current storms demonstrate, this must be done wisely—by mitigating risks and avoiding excessive leverage.

On the other hand, investing in securities can be an effective—and sometimes even the best—way to deploy a company’s capital, especially following a significant market downturn. Warren Buffett, the world’s most successful investor, built the bulk of his wealth by calmly purchasing stocks at the right moments—leveraging his analytical skills and maintaining a long-term perspective. Here, too, wisdom is the key: while it is unwise to use a company’s funds for short-term stock market speculation, allocating assets for the long term—with a diversified risk profile—can yield substantial gains.
Allan Martinson


Foreword: Kaidi Ruusalepp

Keywords:
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