Warren Buffett

-Cash Reserve Advice Given by Warren Buffett in 2010

    Warren Buffett-Cash Reserve Advice Given by Warren Buffett in 2010 Warren Buffett wrote in a 2010 letter to investors, for the first time after the Great Recession. Many Americans who have not lost their jobs and have reduced their spending in the last year have significant amounts of cash on hand. As vaccinations continue and the economy is rejuvenated, many people; They started turning to things they couldn't do for 12 months, such as traveling, cooking, concerts, and sports. Warren Buffett wrote in a letter to investors of Berkshire Hathaway after the Great Recession, “We are paying a very high price to maintain our world-class financial strength. The $ 20 billion in cash-equivalent assets we traditionally hold now come with a very low wage, but we sleep well. ” had included his statements. Following the outbreak, it became clear that having an adequate emergency cushion for contingencies could help alleviate concerns about an uncertain future. "For Him and his business, the night's sleep in 2008 was around $ 20 billion," said James Guarino, managing director of Baker Newman Noyes tax enforcement in Wakefield, Massachusetts.

Warren Buffett wrote in a 2010 letter to investors, for the first time after the Great Recession.

We all need similar things to calculate the quantity we need. But there are far less zeros next to the amount. " said. This cash cushion should be stored in an accessible account such as a savings account, even if a "low wage" is earned according to Buffett. But this "high price", as Buffett points out, allows you to be sturdy and steep in rough waters. Henry Hoang, a certified financial planner at Bright Wealth Advisors in Irvine, California, said in a statement on the subject: "Having cash or cash equivalents in your portfolio gives you peace of mind and the opportunity to earn a profit during a market correction." The general rule of thumb is that you have an investment in your emergency fund to cover your basic living expenses for three to six months. However, even after the epidemic, we can say that there are some changes in this regard. There is no clear criterion for the amount of emergency savings. Some of the factors to be taken into consideration in order to fully understand the amount that depends on many variables are; sources of income, lifestyle, general wealth and comfort level. Or, as Buffett said, whatever makes you "sleep well" ... Warren Buffett-Cash Reserve Advice Given by Warren Buffett in 2010  

Source: Yahoo.Finance

 

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