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Buffett is not afraid to hold cash when he cannot find attractive opportunities from "summary" of Warren Buffett's Ground Rules by Jeremy C. Miller
Buffett's strategy involves being patient and disciplined when it comes to investing. He understands that not every moment is the right time to put money into the market. Instead, he is willing to wait for the right opportunities to come along. This means that he is not afraid to sit on cash when he cannot find attractive investments. By holding cash, Buffett is able to maintain flexibility and be ready to pounce when a good deal presents itself. This allows him to take advantage of opportunities that others might miss due to being fully invested. It also provides a cushion in case of unexpected market downturns or economic crises. Buffett's approach is rooted in his belief that it is better to wait for high-quality investments than to settle for mediocre ones just for the sake of being fully invested. This patience and discipline have been key factors in his long-term success as an investor.- Buffett sees it as a strategic move that allows him to protect and grow his wealth over time. It is all part of his overall investment philosophy, which prioritizes long-term value over short-term gains. Ultimately, Buffett's willingness to hold cash when necessary is a reflection of his commitment to making sound investment decisions based on careful analysis and a deep understanding of the market.
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