Thinking of Holding on to Less Cash Due to Inflation? Warren Buffett's Advice May Surprise You
You see it in the headlines and at the grocery store: Prices on food, gas, and other essentials are on the rise. Your cash balances are losing purchasing power in a big way.
Under these circumstances, it's natural to consider moving that cash into other assets. Those other assets could be gold, commodities, stocks, and even Bitcoin, depending on your outlook. But one legendary investor might tell you something completely different.
Draining your cash reserves when inflation is running high can can make sense from a numbers perspective. But the move can also ultimately prove counterproductive to your finances. This is a point billionaire investor Warren Buffett has promoted recently: Low cash reserves harm your financial independence.
Source Fool.com
