Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Delta Air Lines, Inc. (NYSE:DAL) does carry debt. But should shareholders be worried about its use of debt?
When Is Debt A Problem?
Debt assists a business until…
