The Case for Cash

At Balentine we have long extolled the importance of keeping a strategic liquid reserve (Cash) in investment portfolios. This idea of a risk first approach to investment with an emphasis on immunizing spending needs is gaining in popularity in our industry. To that end, CFA Institute Magazine recently published “The Case for Cash,” written by David Damiani, Balentine’s Director of Risk Management in its Viewpoint column.

2011 Year In Review: Balentine Risk First Approach to Investing

2011 was filled with many ups and downs – with issues ranging from natural disasters to politically-created ones affecting markets. In this three part series, we will look back at some of the biggest factors that affected the economy and examine their potential impact going forward. In Part One of this series, David Damiani, Director of Risk Management, discusses Balentine’s risk-first approach to investing and the benefits of approaching investments in this way.

When Cash is King: Managing Cash to Mitigate Risk (Part 1)

In 1970, Warren Buffett opened a family safety deposit box to discover a letter from his grandfather and $1,000 cash. The letter, written to Buffett’s uncle on his 10th wedding anniversary, extolled the virtues of ready cash, explaining, “Over a period of a good many years I have known a great many people who at some time or another have suffered in various ways simply because they did not have ready cash.”