Even Buffet keeps 15% of all assets in cash.
Some very rich folks keep 25% in cash or cash equivalents… guess you can web search for articles talking about the strategic advantage of keeping cash… there are many. However, with the ease of getting margin trading and leverage, cash needs not mean cash but should mean an access to credit facility that allow you to borrow money to exploit mispricing and temporary market routs.
Buffet’s cash range is 15%-30% range. Most of his income comes from company profits and insurance money. His public companies are 1/3rd and private companies (like Sees candies, Benjamin Moore…etc) are 2/3rd. Since he is holding them long, cash flow is high.
The important point is he buys well established companies and at deep dip when no one dare to touch period. He is taking over those companies at short sale kind of time, i.e. He took BAC at $5 level, with 5Bln, during 2008-9 downturn.
Even after he bought BAC came down “It’s been a tough year for Bank of America. In late August, the bank finally appeared to catch a break when legendary value investor Warren Buffett purchased $5 billion of its preferred shares. Despite giving the stock the “Buffett bounce,” shares of dropped more than 28% since Buffett announced his investment”
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Does robin hood have fractional shares?
They do not do fractional shares, they do not do dividend reinvestment.
They have limited stocks around 5000+ US listed companies. Robinhood is for US people only, need SSN and bank account.
We can buy MOMO, BABA, but not TCEHY.
They are coming with options if we have margin account. Margin is limited to $2000 (I do not have that).
They are coming with bitcoin fractional shares alone.
They do not have web site trading, but limited to smart phone alone.
I just looked at my IB trades today. Cost me exactly $1 for each stock buy, and $0.79 for one call contract. These are practically free.
Robinhood is fun account, I have. I made so far 1191 trades so far !