Buffett: Cash is as indispensable as oxygen, but it is not a high-quality asset

格隆汇 March 13｜"Stock God" Buffett stated in an exclusive interview with CNBC that although cash is as indispensable as oxygen, it is not a high-quality asset in itself. Investors must hold a certain amount of cash to cope with uncertainty, but in the long term, funds should still be invested in assets that can continuously create value. Buffett mentioned that when he steps down as CEO of Berkshire Hathaway at the end of 2025, the company will hold more than $370 billions in cash equivalents, mainly allocated to US Treasury bills. This huge amount of cash is not due to conservative considerations, but because it is difficult to find investment opportunities that are large enough and attractive in the current market environment. Although holding a large amount of cash can bring some interest income, Buffett still emphasized,Compared to cash, he prefers productive assets such as stocks that can appreciate over the long term through compound interest. Buffett stated that cash is indeed necessary to some extent, but it is not a good asset. He likened cash to oxygen in an investment portfolio—oxygen is easy to obtain and indispensable, but not exciting in itself. Investors need to retain a certain amount of cash to pay various obligations and to act quickly when good investment opportunities arise in the market.