The most famous, of course, is the legendary financial guru Warren Buffett, whose company, Berkshire Hathaway, sits pretty on a war chest of US$70 billion (S$94 billion) as at the end of last year.
His partner, fellow billionaire Charlie Munger, reputedly advised investors: "There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn't awash in cash - and I don't want to go back.
And they are hardly outliers in that sense. A study of nearly two million households with investment portfolios of US$3 million or more in 2015 by United States Trust Company, one of oldest trustee companies in the US, showed that eight of every 100 respondents held at least 50 per cent of their portfolios in cash. A further 14 in 100 had at least 25 per cent in cash, while another 40 out of 100 held between 10 and 24 per cent of their portfolios in cash. CW8888 For the rich, there may be no urgency of cash flow to meet yearly household expenses so it is NOT the case of financial independence when passive income just exceeds household expenses with the need of staying mainly invested for investment income.
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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