[wyiske]

I used to be afraid of debt, but understood this principle ever since an accounting friend told me about a luxury cruise liner he worked for. It was started buy an immigrant, and quite successful (pre Covid). I was confused how anyone could launch a cruise company when the cost to buy (or even lease a cruise liner) must be 100s of millions. When I asked my friend about their debt, he said “don’t worry, they’re doing just fine”. It was at that point I realised it’s not the debt that matters, but the rate (time wise) at which you can repay it, i.e., debt itself is fine so long as you have sufficient cash flow, and debt can be cheap.

Unfortunately I’m just a software engineer, who has never been able to put this in practice.