For decades, investors relied on the classic 60/40 portfolio: 60% equities and 40% bonds. That worked well during an era characterised by declining interest rates and relatively stable inflation.
With global equity markets partying like its 1999 despite some major risks lurking in the background like the potential unwinding of the yen carry trade and the US Treasury’s precarious financial position, now may well be a good time to hold some cash.
Berkshire Hathaway’s cash pile reached a new all-time high of $US189 billion by the end of Q1 and is expected to continue rising from here. It’s unusual to see a global leader sitting on cash worth 22% of its market cap, and it’s particularly noteworthy when one of the greatest investors in history is at the helm.
For an investor of Warren Buffet’s genius, one thing is for sure: sitting on a such a massive cash pile is a conscious and informed move which the rest of us can learn lessons from.
With global equity markets partying like its 1999 despite some major risks lurking in the background like the potential unwinding of the yen carry trade and the US Treasury’s precarious financial position, now may well be a good time to hold some cash.
Berkshire Hathaway’s cash pile reached a new all-time high of $US189 billion by the end of Q1 and is expected to continue rising from here. It’s unusual to see a global leader sitting on cash worth 22% of its market cap, and it’s particularly noteworthy when one of the greatest investors in history is at the helm.
For an investor of Warren Buffet’s genius, one thing is for sure: sitting on a such a massive cash pile is a conscious and informed move which the rest of us can learn lessons from.