Is it easy to sit with Cash?

When you have more cash in hand, do you end up spending more? Can you sit with a pile of cash without spending it or without having the fear of inflation? Berkshire had $136 billion in cash during the pandemic. Previous week we talked about inflation. If we don’t invest the money, we are decreasing the value of cash.

Let me tell you a significant trait of the value investors. They never invest until they find something cheap, a really cheap valuation. There are many investors who didn’t invest in the Dot-com bubble and even end up losing their jobs. It is not at all easy to sit with cash and not invest it. The value investors wait for years or maybe a decade until they find a relevant business at a cheap valuation.

With the growing usage of digital cash, we now have more tendency to spend. In a few clicks, you can transact millions of dollars. Will you have the courage to sit on that and not invest them? Moreover, there is a pumping burden of inflation which excites you to invest more and more. You need to develop the trait to spend less and save more.