Comment by bdangubic
2 months ago
> One, you shouldn’t be storing wealth in cash-like instruments, that’s literally using currency wrong (and has been across human history). Cash is for transacting.
Talk to Mr. Buffet and see what he thinks about this with his mountain of cash… Cash being just transacting might be the most insane thing I’ve read here this year, well done
I think it speaks volumes that Buffet has nowhere else to put that ~$382B in cash; that speaks more about current asset valuations ("everything bubble" [1]) more than that US cash is trash. If assets classes are inflated, US treasuries are no longer a safe haven, gold and other precious metals are overbought, where do you go? There is no immediate answer, imho, but only a slow burn as the world reconfigures around the US not being a superpower, the dollar not being a reserve currency, etc. As Workaccount2 comments downthread, "The dollar sucks but everything else sucks more. [2]"
[1] Look around: Bubbles are everywhere. - https://news.ycombinator.com/item?id=46407032
damn shit is really bad, sky is failing, bubbles are bursting… any other clickbait I need to read up on before I go spend the last of the good days with my kid…?
coolest thing about us in the 50’s is that we’ve seen and read this shit many times before and don’t fall the “bubble du jour” or “shit’s really bad this time…” - especially readers here on HN, bubbles be bursting for yeeeears now, recession is coming, crashes are coming… genuinely am sitting here scared and shook about Buffet hoarding cash, that never happened before…
I've lived through the '00 crisis, the '08 crisis, and a global pandemic. In all cases, there were signs the event was upon us, but you won't know for sure until the event is in full swing. The advice remains the same as it always does: carry as little debt as reasonably possible, don't overextend yourself without good reason, ensure sufficient liquid reserves, maximize employment and income opportunities, and have a strong network, both professional and community. Stay healthy to the best of your ability. Humans have existed for some time, we're going to exist for a while longer. I have many people who depend on me, and I'm prepared for anything short of global unexpected nuclear conflict. As long as you care, that's half the battle. Wishing you a favorable outcome.
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Yup. It’s wild seeing the internet chat about the latest flavor of the week of “the sky is falling”.
Try going back 1 year and look at those headlines. What you’ll find seem silly looking back.
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People born in different eras often develop different worldviews by the time they reach their 50s. Not everyone is lucky enough to be born in the "right time".
If you're in your 50s you should have at least noticed that things have gotten progressively worse, if not for you (e.g. working in FAANG and getting by better than ever) for the majority in all kinds of ways in those 50 years: housing costs, healthcare, jobs, public debt, private debt, it's a huge list.
So, yeah, those "shit is really bad, sky is failing, bubbles are bursting" shit has been consistently right all those years, and it will get worse.
Of course some people only grok that things are bad when it happens to them personally. 80% of the people could be coughing blood outside their door, but as long as they get their bonuses, all is fine, as far as they're concerned.
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Coolest thing about you in the 50s is that you’ve spent your grandkids’ money (and used up their resources and polluted their environments) so you wouldn’t have to face any consequences for your poor decisions.
Unfortunately your grand kids have run out of money and descendants to steal money from.
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> Talk to Mr. Buffet and see what he thinks about this with his mountain of cash
When finance types say "cash," we mean cash and cash equivalents. Berkshire Hatahway doesn't literally hold cash, they hold yield-generating cash equivalents.
> Cash being just transacting might be the most insane thing I’ve read here this year, well done
I strongly recommend a home economics course if this is the case. If you want to go deeper, anything about monetary theory
> I strongly recommend a home economics course if this is the case. If you want to go deeper, anything about monetary theory
I have a degree in Finance so it is not all that necessary but maybe a 2025/26 refresher course will do me good :)
Does he really hold cash? Or does he hold TIPS for example, and people colloquially refer to it as "cash"? I assumed it's the latter since it makes much more sense.
> Does he really hold cash?
No. Berkshire Hathaway isn't a squirrel.
> people colloquially refer to it as "cash"?
Cash and cash equivlants are referred to in finance as cash, since they are–for all practical purposes–equal to it. Except yield generating. Which, if you're not an idiot, is how you hold cash.