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> This is clearly false - wealthy people don't keep mountains of cash lying around as they would miss out on the growth in bull markets, and as a result their w
by pg314 9y ago
> This is clearly false - wealthy people don't keep mountains of cash lying around as they would miss out on the growth in bull markets, and as a result their wealth would decrease relative to their peers.
Some wealthy people do. E.g. Warren Buffett's Berkshire Hathaway was sitting on 100 billion dollar in cash last summer [1]. If he doesn't find anything that is fairly priced, he prefers to sit on his cash and wait.
[1] http://fortune.com/2017/08/07/warren-buffett-berkshire-hathaway-cash/ http://fortune.com/2017/08/07/warren-buffett-berkshire-hatha...
- nine_k 9y agoSee also: Apple (~256B in cash), Google (~86B in cash). This cash is mostly securities, though; their "pure" cash positions would be "mere" ~15B and ~13B, respectively.
- csomar 9y agoI think they mean low risk/volatility securities like T-Bonds. You can't hold 250B in a single bank. Or maybe you'll need to create your own bank. Plus they are going to demand interest and risk clarification on that.
- babaganoosh89 9y agoI think Mark Cuban also said he keeps a lot of his money as cash for buying opportunies.