Solomon Technology (TPE:2359) Could Easily Take On More Debt – Simply Wall St

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.’ So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Importantly, Solomon Technology Corporation (TPE:2359) does carry debt. But should shareholders be worried about its use of debt?
What Risk Does Debt Bring?
Generally…

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