Investing is about putting your money to work earning more money, but as Warren Buffett notes, there are times when liquidity is paramount and at those moments cash becomes all important.
“There have been a few times in history, and there will be more times in history, where if you don’t have it, you know, you don’t get to play the next day,” Warren Buffett said at the 2022 Berkshire Hathaway Annual Meeting. “I mean, it’s like oxygen, you know? It’s there all the time, but if it disappears for a few minutes, it’s all over.”
Hear Buffett’s full explanation
© 2022 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.