One of the more challenging aspects of our asset allocation decisions — and also the most exciting and rewarding long-term — is the inclusion of cash and short-term treasuries as a key component of our current investment strategy.
There are very few activities that are capable of building wealth more rapidly than having cash available to buy assets when prices decline.
Eric Cinnamond and Frank Martin both published pieces this past week that succinctly describe the rationale for cash as an investment, consistent with the positioning I described in the “Portfolio Constituents: Cash” section of our 2017 New Year Update, .
I encourage you to read their articles:
Eric Cinnamond — FANGs or Patience
Frank Martin — An Enterprising Thought: Cash as an Option