Posted 4 months ago

Does Cash Have Cooties?

The way some real estate investors act, you'd think that cash has cooties.

They fear it, as if it has germs.

They cannot stand to have cash uninvested and they are desperate to get into a deal. Any deal.

These investors misunderstand cash.

Cash is an option on opportunity.

If you don't have cash set aside for the best opportunities, you will miss them.

If your cash is tied up in deals purchased at the market top, you will miss the best opportunities.

That's if you are lucky.

If you're unlucky, or bought a bad deal or invested with an inexperienced sponsor, your investment could go to zero.

The world's greatest investors know there is a time to buy and a time to sell.

And those times are generally the opposite of whatever the Herd is doing.

Right now, the Herd is buying everything in sight.

But Warren Buffett is moving into cash. Because he knows what's coming.

And, while I'm not in Warren Buffett's league, I take his advice seriously. It's a big reason why I just sold my entire portfolio.

Which allowed me to generate 23% annualized returns for my investors. They basically doubled their money in 4~5 years.

You cannot do that buying at the top.