The real reason you should hold cash

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#6
That's really true. Using Berkshire as a vehicle, he has a lot invested through "float" i.e. leverage, albeit on favorable terms to him.

Cash positions gives him the assurance he needs that claims can be paid out if needed. Also, the cash pile is also partly a result of the cash generation capability of his companies.

Regards,
theasiareport.com
(30-07-2014, 10:08 AM)freedom Wrote: Buffett is never in a net cash position probably in his whole investment life. Overall, he always has more debt than cash, just like most ordinary people in the world. They have higher mortgage than their cash holdings. You only hold cash because you don't have the time to spend it yet and it does not mean, you can hold on your cash in any circumstance.
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RE: The real reason you should hold cash - by Ben - 30-07-2014, 09:58 AM
RE: The real reason you should hold cash - by theasiareport - 30-07-2014, 10:39 AM

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