Some people say Buffett's over $370 billion isn't cash but government bonds. Actually, they don't quite get the concept. What he holds are short-term government bonds and treasury bills, which are cash equivalents. Their characteristics: backed by national credit, zero risk, easily liquidated, and you can get the money into the market the same day. Essentially, it's super cash with interest. Historical comparison: In 1999, before the dot-com bubble, these assets made up about 15%; In 2008, before the financial crisis, about 25%; Now, they account for over 58%, hitting a historic high. Whether you call it cash or short-term government bonds, the signal is the same: don’t chase the highs, don’t catch falling knives, keep enough ammo, and wait for the real big opportunities.