Investing is about making your money grow—but according to Warren Buffett, there are moments when preserving liquidity is more critical than chasing returns. In those situations, cash isn’t just helpful—it’s essential.
At the 2022 Berkshire Hathaway Annual Meeting, Buffett compared cash to something even more fundamental: “It’s like oxygen. It’s there all the time, but if it disappears for a few minutes, it’s all over.”
He emphasized that while opportunities to invest and grow wealth are important, so is the ability to stay in the game. “There have been a few times in history, and there will be more… where if you don’t have [cash], you don’t get to play the next day.”
Buffett’s message is clear: cash might not earn high returns, but in times of crisis, it provides the flexibility and stability needed to survive—and eventually thrive.
Hear Buffett’s full explanation
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© 2025 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.