No, no I understand. It’s just when mentioned bussiness, I just wanted a through answer to those questions. Like that reminded of below question from long ago.
Well leaving the question above, the background was that, as mentioned by OP, the guy was in real estate bussiness and had leverage like basically put entire of his holdings and savings in bussiness and lost all when he wasn’t able to service the debt. And he is not the only guy, I come across many many people that pledge almost everything and find themselves in trouble when bussiness goes and they are not able to service the debt. I was wondering like surely there must be something deeply wrong . Pretty sure there must margin, target miss for such crisis to happen. I just didn’t know what’s the margin(debt to equity ratio,) target % of a good sustaining bussiness.
I can even go further say, it’s same in trading f&o right. It is a bussiness, and often times we see people full crazy using whatever savings they have to play in f&o , especially buying options is leverage and everyone goes crazy and loses everything. I see f&o as bussiness too. Only difference is , I guess we can exit when we want and there is interest rate component here(servicing the debt I mean).
I just want to know the metrics and do it in right direction way.