《On Staying in Cash》 Buffett on staying in cash: Staying in cash is an active choice, not a forced one. Buffett is never afraid of cash dragging down returns. What he wants is **'avoiding big mistakes + seizing opportunities for long-term high returns.'** Cash makes you stronger when others are fearful. Munger on staying in cash: Not investing is more important than investing incorrectly. Soros on staying in cash: Staying in cash is both a defense and an offensive weapon. Ray Dalio on staying in cash: When you don’t have an edge, you should stay in cash. Jesse Livermore: Mastering the art of staying in cash is the key to longevity. Even Da Yu Ge in the circle has talked about staying in cash: I think holding 50% cash most of the time is the limit. Clearing out your positions entirely, meaning staying fully in cash, doesn’t work. Selling off quality assets completely is essentially betting 100% that prices will drop. That’s predicting prices, and predicting prices is bound to fail—even Buffett can’t do it. So it is said: Amateur investors fear staying in cash; Professional investors fear being in the wrong position.