Seems Warren Buffett is ~33% in cash. Is there an index of cash positions of bellwether investors?
Could you use such an index to estimate the *confidence* in the trajectory of the stock market?
Seems like a better measure than a trailing volatility measure.
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Setting cash aside can be to invest in great deals or avoid risk. Two different intents, same action.
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Aren't they the same thing? Expecting great deals is the same as expecting a crash and therefore risk of such. Unless you mean expectation of great deals in M&A or private equity.
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how much of a factor is tax planning in this allocation? is cash the best hedge for increased volatility in stocks?
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I don't actually know anything about how big institutional funds do tax planning. I suppose it depends on how much of their funds are in retirement/tax-deferred vehicles etc.
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I don't know, cash vs non-cash is a pretty robust, scale-free position. And it's not just him
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That’s a lot of cash. How many different currencies I wonder....
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Well, his low has been 22% around 2008-11... as institutional investor, he has to maintain a bigger cash position than us retail investors since he can make bigger sudden moves like private equity or M&A deals seekingalpha.com/article/411223
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without knowing intent, an average index of cash positions conflates these issues.
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Yah, those portfolio balance facts are a measure of self-insurance and therefore a measure of precieved risk, which is way more meaningful than a technical measure of volatility.
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