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Cash is king?
Something I've been hearing a lot lately.
"I wish I had more cash right now"
- Many retail investors are fully invested right and have no cash to add/average down. Which might be why we've seen so many red weeks.
- Inflation, recession preparation -- sell at a loss and raise cash to live. This goes against rule #1, which is never invest money you will need in the near future.
- At the moment, those that do have cash or can add to their cash pile have the advantage. Many great COMPANIES trade at a very reasonable multiple and as most legendary investors have said, "invest in great companies and focus less on headlines" (something along those lines).
- Long term investors have all the time in the world. Inflation? ok. Recession? ok. Those are bad but a LT investor should take advantage from these situations. 10-20 years from now, do you think your holdings will be up or down?
- Lastly, stop reading commentary about marco events and start reading what your company is telling you. Again, you invest in companies, not in macroeco. (this is not me saying macro doesn't matter but it's less essential to your thesis).
- A recession does not mean that all companies will struggle. Companies will still need SaaS, Cybersecurity, logistics, cloud, data centers, etc...
To end, as WB (not Warner Bros lol) said "Be fearful when others are greedy, and greedy when others are fearful."
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