Buffett warns investors to avoid borrowing money to buy stocks

Legendary investor Warren Buffett has made it clear in his latest letter to Berkshire Hathaway Inc. (BRK.A) shareholders that he's no fan of margin debt, or loans used to buy stocks. And the billionaire's comments couldn't have come a minute too soon. Investors have accumulated a record $642.8 billion of margin debt, the highest level since the Dotcom Bubble, which worsened the recent correction and threatens to intensify future sell-offs, The Wall Street Journal reports. When it comes to margin debt, Buffett told CNBC , "Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions."

 -rmc//