What Ray Dalio Got WRONG - Why Cash Is King

In today's video, Patrick Bet-David reacts to Billionaire Ray Dalio changing his position on holding cash.

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[cartagenadaniel]

I was a wrestling coach for over 20 years, the biggest lesson I would teach all my athletes, 'You will always know exactly what to work on after you lose.'

[kansasmile]

I just want my money to keep outgrowing the inflation rate. That’s why I'm looking for companies now to invest about 150k in savings i have parked in the bank. Just don't know strategies to employ to make significant gains with consistent cashflow.

[Bishman]

PBD was right. He is more aligned with entrepreneurs, small business owners, and the individual who wants to add an extra 0 to their income.

We are witnessing a real life case study in 2022.

Cash is king. 💵

[HyperionStudiosDE]

He wasn't necessarily wrong. The environment changed.
The Fed went from QE to QT so of course the value of cash increased dramatically.

[fudogwhisperer]

The reason he said cash is trash, was in 2019. At that time, there was a different market forces at play, low inflation and the fed put. It's also is because there is no return on holding cash. Where there is no risk there is no reward. Now, circumstances have changed, the market has changed, the fed is fighting inflation sacrificing the market which is in a bubble due to the fed manipulating the market with low interest rates and QE..

[adamzaneagle]

Cash is trash during a bullrun
Cash is king during a recession

[arpitkapoor]

Pat we need a new interview between Ray Dalio and you. The last time you did that was 2019, a lot has changed since then and we need update on the economies around the world. We desperately need a newer version of that 2019 interview! Great content though, keep it up, love from India!!

[donaldmeckanzy]

Cash is king. As a great negotiator, I can pull of buying stuffs with some pieces of my equity but there comes times when you need to put cash on the table and take advantage of an opportunity. Mr Buffet is right, and has $105B+ to prove it.

[Teamshmo]

I think the main thing is what do you want to do? If you are planning on buying big things it makes sense to pile cash and wait. If you just have a cash pile with no real use it makes sense to buy things today that you think will go up. The use of cash is what determines if it is trash or king to you

[slayermeb]

I've been following Buffet, and I've been in a cash position since 2020.

[PaulAlexFit]

A Good Morning in Miami starts with PBD 💪🏾

[robertl]

Warren has been giving us the advice our parents should have given us growing up for the last 60 years. The only reason 98% don't listen is that he does not charge for his advice people want to be sold the dream but the buff gives you logic and truth

[adreamrealizedineternity]

It’s quack time. Buffet is a sitting goose and he laid a big one! Wow 🤩 keep chillin Mr buffet. Thank you for staying alive. #storesReOpen

[adamskoneczny]

IMO, he did not get wrong ( at least not completely) because at the moment when he stated that, it was true. Market are changing, situation is changing, Buffet lost one of best market ride ever, but now definitely is good time to keep cash. Once again IMO this is what Ray Dali trying to tell us

[robertfricano]

Always remember this ....always buy what you need but not what you want ! If you need a pair of shoes buy them but don't buy them In 4 colors etc. You get my drift.

[Science-bidp]

You can leverage debt in to cash and kite that debt back with the very cash it produced

As long as the interest doesn't outweigh the equity the cash is producing. The borrower will always end up on top.

Where people make mistakes is leveraging too much debt and calling it an asset. On paper it's looked as an asset

But if something happens

That "asset" now becomes what might be your biggest problem

[pariskokosioulis]

patrick are you thinking of bringing warren buffet on your podcast? Great content! one of the best channel for entrepreneurs

[DarkAuraDeathAngel]

2:00 same here, probably not alot books but still, to get knowledge lol

[petercee]

The environment & Landscape are always changing, so pay attention everyone

[ancientengineer]

Last time when you said cash is king I had already took Dalio's advice on it being trash. So I thought you were hiding something and I asked, Pat what are you really going to do. Someone replied something like, you want him to take you by the hand too? No there was just a contradiction of preparation, now it's clear thanks.