Ignoble Nobels October 1, 1998 Dear Investor, About leverage, Warren Buffet said, “if you’re smart you don’t need it, if you’re dumb it’ll ruin you.” He forgot to add: if you’re brilliant and arrogant, it will ruin you double. Such is the sorry epitaph on Long Term Capital Management’s (LTCM) career. Long Term Capital Management seems a case of “everything but”: that is, a short term lack of real capital under...