Shop for value or hold cash?

Even investors who know that a market crisis is a great time to buy good companies at unbelievable prices aren't rushing at every opportunity they see. And who can blame them?

In the current pandemic crisis, even the 'Oracle of Omaha' Warren Buffett is holding on to cash rather than grabbing opportunities to invest. This appears to be in stark contrast to the investment strategy he otherwise followed. For instance, in his 2011 annual letter, he described debt as the most dangerous asset in the long term, and advised investors to be greedy when others are fearful. And yet his company Berkshire Hathaway is now sitting on a large cash pile of US $128 Billion, an amount that is largely unchanged over the past quarter

So how do value investors tread forward in such a time? Should they also hold cash or go ahead with the right opportunity?

Join us in our upcoming webinar where an expert from Quantum will help you form a long-term Value Investing strategy in these unprecedented times and also answer your queries.

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This article was originally published on May 27, 2020.