The Importance of Cash in the Economy

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Buffett: With a massive amount of inflation, cash becomes less valuable. Therefore the same cash is trash. And his proof is that people are hoarding a tremendous amount of cash. I think he thinks that inflation at the rate it's going now will not overcome the buying power of the dollar when things crash. So in other words, since you don't have certainty about when the market's going to go down, your best choice is to put money in Treasuries.

As the shock waves dissipate following the 2023 Berkshire Hathaway shareholders meeting, they nevertheless continue to be felt as we come back for a third week of analysis on one of the investing world’s most significant yearly events.

This year’s meeting took place in the midst of a tumultuous period of post-pandemic supply chain disruptions, worldwide inflation, and the looming threat of the next big recession.

In the final episode of this three-parter, Phil and Danielle focus on the role of currency in the current economic crises facing the markets. Listen in as they break down the comments of Buffett and Munger and offer their own insights on the topic.

For more pearls of wisdom from the Oracle of Omaha, get your free copy of the Warren Buffett Book of Quotes: https://bit.ly/3OEPXjL

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