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. We can see that MonotaRO Co., Ltd. (TSE:3064) does use debt in its business. But is this debt a concern to shareholders?

Why Does Debt Bring Risk?

Debt…