Day: March 23, 2026

In times of market stress—especially during geopolitical conflict—many investors instinctively become more conservative. Headlines trigger fear. Risk aversion sets in. And the first reaction is often: move to cash, wait this out, and protect what you have. But one of the most successful investors of all time, Warren Buffett, has long argued the opposite. In this clip, Buffett explains why holding large amounts of cash during war is generally a mistake: Watch here. Buffett’s Core Principle: Own What Produces Buffett’s reasoning is straightforward: cash itself does not produce anything, and over time inflation gradually erodes its purchasing power. On the other hand, productive assets—such as businesses, farmland, and real estate—generate earnings and cash flow. Publicly traded stocks are one of the most accessible ways investors can own productive assets, because when you invest in stocks you are buying ownership in businesses that produce goods, services, and profits. During periods like wartime, when government spending often increases significantly, currencies can lose value even faster. In Buffett’s view, owning assets that produce income and grow over time is far more effective than holding cash or other “pieces of paper” that steadily lose purchasing power. History supports this thinking. Even through major wars,