Apr 19, 2020
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Twitter Handle: @TreyHenninger
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Investors today are likely underestimating the potential for bankruptcy of their favorite companies. Regardless of the long-term return of underlying assets, bankruptcy is possible when debt covenants are breached or a negative liquidity event occurs.
Both are possible outcomes in today's investing environment as most companies are not well situated for handling a long period of zero revenues. (Not zero profits, but zero revenues)