Cash is Trash vs Cash is King - What say you??

[Kyle J.]

I read this article the other day and thought the different perspectives were interesting: Ray Dalio warns 'cash is trash' as Warren Buffett sits on $128 billion.

As the title of the article suggests, you basically have Ray Dalio (billionaire founder of the world's largest hedge fund) arguing that "cash is trash" and warning investors against sitting on large amounts of cash, the value of which could get eroded away over time.  Not to mention how well the stock market has been doing lately: The S&P 500 surged 29% in 2019, its best return since 2013.

In previous discussions on here, I've noticed that some people can be quite opposed to anything other than investing real estate (specifically the stock market, traditional retirement accounts, etc). However, I think Ray's point is don't hoard cash and be diversified in what you invest in (he even mentions investing in gold).

On the other hand, you have Warren Buffett (widely regarded as one of the most successful investors of all time and one of the richest people in the world) sitting on $128 billion in cash and saying he'll "never risk getting caught short of cash".  Pretty much the complete opposite of what Ray Dalio would recommend.

There you have it.  Two completely contrasting viewpoints about what to do with your money in this market from two men who I don't think anyone can dispute both know how to make money. 

So which side of the fence do you tend to lean on?  Is cash trash?  Or is it king?