Key insights
- The author discusses balancing current investment opportunities with the need to preserve capital for future market downturns, citing Phil Fisher and Berkshire Hathaway's cash position. The strategy involves slowing Dollar-Cost Averaging (DCA) to build cash reserves for potential future sales. While acknowledging red flags in macro factors, the focus remains on value investing principles rather than market timing.
How do you balance good deals today, and potential good deals later?
Phil Fisher said in the Common Stock, Uncommon Profit to pace oneself, trying to strike a balance between the two.
Macro factors are flashing red, but value investing is not about predicting crashes. On the other hand, Berkshire is sitting on a mountain of cash..
My approach is slowing down the DCA into the good deals today, to ensure I have cash when more things goes on sale..
What’s your mental framework/experience with this problem?