I used to be rather crazy of a company not having debts. Debt is evil. I cam round the idea that in some business models, debt is a function of the business. It is especially true for many dividends based business such as REITs, Business Trust, Telecom companies. Even private equity cannot run away from not having debts. The way to look at debts is that, on a corporate level not all debt is bad, but what we look for is how well the manager balances debts with efficiency, share holder value and risk management:

1. You want to see them leveraged up to make sure they don’t missed out on good opportunities (an emphasis on good!)
2. You want them to have a good understanding on debts, push hard enough to how much they borrow but not so much that they do not have a contingency to it

A ......