James Saft notices that Warren Buffett, in a contrarian sort of way, is hoarding cash. Hmmm. Wonder what that means. Full post is here. Fun excerpts here:
"The odd thing about the current market is how calm it is in the face of fairly unprecedented conditions."
"Cash is worth holding because it is dry powder which gives the owner options."
'Still, looking at the long-term returns on cash and concluding it is a tool to be shunned is a bit like saying a golfer ought not to have a back swing because only forward momentum drives the ball. Cash is the thing which puts you in a position to drive the ball, and gives your investment swing power. Its value lies not so much in itself but in the ease with which it can be turned into other things."
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