Archive · 31 Jul 2026
Buffett Warns of Leverage Risks in 1993 Lecture
Warren Buffett, a famous investor, gave a talk in 1993 at Columbia Business School.
He said that if you borrow money to buy things you don’t understand, it can cause big problems.
He called this mix of ignorance and borrowing “pretty interesting results,” meaning it can lead to sudden ruin.
Buffett’s point was that using debt makes losses worse.
He also believes in buying good companies for a fair price and keeping them for a long time.
He thinks rich people should help others, which he does through the Giving Pledge.
His warning is still useful for anyone who wants to invest wisely.
It reminds us to be careful when using borrowed money.
The lesson is that knowledge and careful planning are key to safe investing.
Buffett warned that borrowing to invest in unfamiliar assets can lead to disaster.
The warning was delivered in a 1993 lecture to graduate students at Columbia Business School.
Buffett described the combination of ignorance and leverage as producing “pretty interesting results.”
The phrase is a sarcastic reference to catastrophic financial collapse.
Buffett’s broader philosophy emphasizes long‑term investing and philanthropy.
- Who
- Warren Buffett
- What
- Warned that borrowing to invest in unfamiliar assets can lead to disaster
- When
- 1993
- Where
- Columbia Business School, New York
- Why
- To illustrate the dangers of combining ignorance with leverage
- Speaker
- Warren Buffett
- Quote
- When you combine ignorance and leverage, you get some pretty interesting results
- Context
- 1993 lecture to graduate students at Columbia Business School
- Subject
- Financial leverage risk
- Philosophy
- Long‑term investing and philanthropy