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In the meantime Buffett currently holds more cash than just about anyone else on the planet - over $120 billion in cash equivalents at the end of last year. Ye
by s1t5 7y ago
In the meantime Buffett currently holds more cash than just about anyone else on the planet - over $120 billion in cash equivalents at the end of last year.
Yes, his point that cash loses its value over time is true. No, he didn't get to where he is just by holding cash. Yes, your situation and mine are vastly different from Buffett's.
But it just shows that things aren't as simple as "cash=bad".
- tathougies 7y agoCash equivalents include commercial paper and bonds. Cash equivalents are not the same as cash.
- bwanab 7y agoThere’s a reason they’re called cash “equivalents”.
- tathougies 7y agoUm right, but commercial paper and bonds have interest rates, unlike normal cash. So while they're easily converted to cash, they do not suffer as badly from inflation.
- quickthrower2 7y agoThey also carry risk of default.
- deleted 7y ago[deleted]