Think this issue of whether holding (more) cash or staying invested is better has to do with the concept of market timing.
For those who do not believe that one can consistently time the market (as in get into the market by buying low and exiting the market by selling high, rinse and repeat), staying invested (which does not necessarily mean holding zero cash with no warchest) is the superior option. This of course assumes that you have done due diligence and bought stocks which are at least stable and hence likely to weather downturns in the economy and stock market.
This argument between those who advocate holding cash or staying invested therefore turns on the difference in whether you perceive and believe yourself to be a trader or an investor.
Those who are well-read will probably be able to produce studies showing that those who stay invested for the long term tend to come out better than those who try to time the market. The caveat to this is whether these studies which are based mainly on the US market will be fully applicable to our local stock market.
We are neither kings nor the shareholders of Berkshire Hathaway.
In Buffett's quarterly shareholder letter, he said it has been difficult to identify acquisition opportunities to wisely invest Berkshire’s $116 billion in cash and bonds to generate earnings growth for investors.
how to hold 100% cash when u are holding investment. unless u wake 1 day and realize all your analysis for your long counters is wrong and sell them
Think this issue of whether holding (more) cash or staying invested is better has to do with the concept of market timing.
For those who do not believe that one can consistently time the market (as in get into the market by buying low and exiting the market by selling high, rinse and repeat), staying invested (which does not necessarily mean holding zero cash with no warchest) is the superior option. This of course assumes that you have done due diligence and bought stocks which are at least stable and hence likely to weather downturns in the economy and stock market.
This argument between those who advocate holding cash or staying invested therefore turns on the difference in whether you perceive and believe yourself to be a trader or an investor.
Those who are well-read will probably be able to produce studies showing that those who stay invested for the long term tend to come out better than those who try to time the market. The caveat to this is whether these studies which are based mainly on the US market will be fully applicable to our local stock market.
My 2 cents.
We are neither kings nor the shareholders of Berkshire Hathaway.
In Buffett's quarterly shareholder letter, he said it has been difficult to identify acquisition opportunities to wisely invest Berkshire’s $116 billion in cash and bonds to generate earnings growth for investors.
Reply to @FeelsBadMan : ya lor. buy sub par also better than sit in bank