Want cash like Warren? How to stack paper without ditching ASX shares
Those who own ASX shares face an existential trilemma: how much cash to hold, how to finance new investments, and when to sell existing ones.
Cash has to come from somewhere to purchase new assets. Keeping cash on the sidelines is one way to remain trigger-ready tactically.
But there’s a trade-off to holding cash versus putting it at risk in, say, equities or some other asset class, such as bonds.
For every dollar that’s retained, that’s a dollar that could be working in the market. Thinking long-term, there’s a compounding gap here.
Warren Buffett’s latest moves at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have seen the conglomerate amass a $325 billion cash pile.
And based on Buffett’s history in…
