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iQuestions Faculty, Ron Blue 
 
 
Question: 
 
Should I ever borrow to invest? 
 
Answer: 
 
You know, it’s been really an interesting thing, but I’ve had, I don’t 
know how many hundreds, if not thousands of people come into my 
office over the years, and nobody has ever come into my office and 
said, “Let me show you a really bad investment.” 
 
Every time somebody has come in to show me an investment, it has 
always been good, conservative, limited risk, certain to achieve its 
results. Nobody’s ever come in and said, “Let me show you a high-risk 
investment.” “Let me show you an investment that may not turn out.” 
 
Now, here’s the point. If every investment looks good, then I would 
have to ask myself the question, “Shouldn’t I invest in the things that 
come across my desk?” and, “Shouldn’t I borrow to invest, because if I 
borrow money to invest, my return is going to be greater than the cost 
of borrowing.” 
 
Let me tell you this: no investment is guaranteed. No investment is 
ultimately always conservative and always low-risk, except maybe 
cash—and even cash has risk to it—because if we have inflation, cash 
goes down in value. There’s no investment you can make that has no 
risk or even low risk. They all have some. 
 
Here’s the point. You’ve got to take some risk, and you will make long-
term investments, but never, ever borrow to make an investment 
 
 
because it sounds too good to be true. Because if it sounds too good to 
be true, it’s not true. 
 
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