Even if only 5% of his NW is in cash, that'd be $50billion dollars in actual liquid cash. Even if it's 1% or less, he almost certainly has over $1bn in cash or practically liquid cash. That's already a dragon's hoard.
Even if only 5% of his NW is in cash, that'd be $50billion dollars in actual liquid cash. Even if it's 1% or less, he almost certainly has over $1bn in cash or practically liquid cash. That's already a dragon's hoard.
Only a moron would hold $50b in cash, and certainly not one who understands finance.
There are no Scrooge McDuck cash vaults.
Which is why the term "cash," to those in finance or familiar with its lingo, is understood to actually mean "short term treasuries" and other things you would find backing a money market account, unless the context very specifically calls for distinguishing those two things.
"actual liquid cash"
If you can buy a $44B company on a whim, then what you hold is indistinguishable from cash.
Not true at all. You can borrow against stocks easily.
That's what I'm saying.
And cash is not an investment. Trying to conflate the two just makes for gobbledegook.
Equity is only colloquially an “investment”.
The investment is what the company spends the money raised on.
Equity is just one kind of savings.
Mushing all the terms together just makes a hash of any intelligent conversation.
Use precise terms if you want to discuss investments and finance.
That's exactly what I'm saying, “investment” has a precise meaning in economics, it's the increase of productive capital (example: building a data center is an investment).