How to Use Leverage to Increase Your Portfolio Returns

headshot - Efraim Goldstein (bnw, square)
Efraim Goldstein February 23, 2023

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Want to increase the potential profit on your investment portfolio? 

What would happen if you could use disproportionate strength to increase your portfolio’s profits? Then you would be using a strategy called “leverage” or “margin.”

In today’s show, Doug, and his son Efraim, talk about the pros and cons of investing using a leveraged strategy. When an investor decides to invest on margin, he is actually borrowing money from his broker in order to have a larger sum of money to invest. That way, if the stock goes up, he makes a larger percentage, and ultimately walks away with a larger sum of money. 

If all goes well, an investor can make a lot of money. But, if the market goes down, one can find himself losing more money faster… 

Listen to understand why a “long-term investor” needs to understand what a “margin call” is and why this may not be the best strategy for long-term investments. Don’t wake up one day to find out that your brokerage firm sold out your portfolio.

Efraim is a business student, former IDF officer, and an entrepreneur, head of “A Day with an Officer.” Contact him at:

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