When in doubt, save cash
I was planning to write a full post on this topic, but then I found a quote that sums it up perfectly, so Iāll lead with that:
āIt takes character to sit with cash and to do nothing. I didnāt get to where I am by going after mediocre opportunities.ā ā Charlie Munger
Holding cash isnāt irrational. And itās not timing the market.
The irrational part comes in when you constantly increase your cash position which leaves time on the table for your money to grow *in the market.*
As of today, there are:
ā¢ two major global wars (Iran, Ukraine),
ā¢ a weak U.S. economy,
ā¢ weak private credit markets
ā¢ global geopolitical tensions and economic uncertainty, and
ā¢ a bubble-like AI revolution
Itās increasingly hard to predict what may come next, and while Iām in no way panic-selling any of my positions, I donāt believe itās a bad idea for me to save cash.
Iām doubtful for a lot of things, and amid any uncertainty, I save cash. The end goal is to make sure my money is invested in shares of what I deem quality companies. (After all, Money invested > Money sitting idle.)
But those types of opportunities arenāt popping up consistently in this market, and thatās to be expected.
Patience is a virtue. No need to always buy new shares of new companies, or current holdings, just because.
At least as a stock picker.
Regardless, thatās my tiny opinion as we start the week.
Happy investing, folks. Stay rational (always).
