Sunday, 14 December 2014

Investment Dry Powder

In one of Berkshire Hathaway Chairman's letter in the earlier years written by Warren Buffett, he told a story, as he usually does, about his investment approach. He mentioned the loaded "shot gun wait" for a slow moving elephant as he sits waiting patiently. In last year’s letter he promised a return to the investment jungle as he had dry powder, but couldn't find a slow moving elephant fast enough to allocate his ever growing cash intake.

Dry powder is really referring to gun powder in a financial sense, but cash is the investment substitute for dry powder.


You have to have dry powder to invest.

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Feel free to ask question and make comment.


FII

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