- Robert Kiyosaki credited Warren Buffett’s practice of buying assets with cash during market crashes, saying, "Cash is not trash in a crash."
- Buffett has been good at timing market corrections by avoiding bubbles and investing in assets when prices are low.
- Kiyosaki revealed that he recently invested millions of dollars in real assets, including oil wells, gold, silver, and Bitcoin.
Robert Kiyosaki, an author and investor, has challenged the popular saying ‘cash is trash,’ arguing that having cash during market crashes can give investors the chance to buy assets at lower prices.
Kiyosaki contended that "cash is not trash in a crash" in a post on X, implying that investors who maintain liquidity during downturns might be able to buy valuable assets after markets decline. In making his point, he alluded to Warren Buffett's practice of hoarding substantial sums, speculating that the chairman of Berkshire Hathaway might be "keeping his powder dry" to purchase assets at reduced prices in the event of a market correction.
Buffett has often been credited for being good at timing his buys. He has been known to take advantage of market corrections with his investments. He often avoids excessive exposure during bubbles and puts money to work when valuations are attractive.
Kiyosaki said that some investors may choose to follow Buffett's advice, but he advised people to manage their own investments. However, the Rich Dad Poor Dad author also said that he recently put millions of dollars into real assets. He bought more oil wells as well as gold, silver, and Bitcoin.
Kiyosaki also said that geopolitical tensions could affect energy markets. For example, instability in key oil shipping routes, such as the Strait of Hormuz, could drive up oil prices.
Kiyosaki said he was sure that gold, silver, and Bitcoin could go up after a big drop in the market, but stated that his prediction could be wrong. He said that even if the markets don't go the way he wants, he still makes money from the cash flow from his businesses and real estate.
Bitcoin (BTC) was trading at $71,517, up over 1% in the last 24 hours. On Stocktwits, retail sentiment for BTC remained in the ‘neutral’ territory, as chatter levels remained ‘low’ over the past day.
Bitcoin Comes Out As ‘Chaos Hedge’ Amid Geopolitical Tensions
Commentators on the market have also noted that Bitcoin has held up well despite political tensions. Investor Anthony Pompliano said on X that since the conflict in Iran began, many traditional assets have lost value while Bitcoin has gained value.
Pompliano says that during the same time, the Nasdaq fell 2.2%, the S&P 500 fell 3.45%, gold fell 3.5%, and the iShares 20+ Year Treasury Bond ETF (TLT) fell 4.71%. On the other hand, Bitcoin went up by about 7.75%. Pompliano called the cryptocurrency a "chaos hedge" and said that it has done well because of the recent geopolitical uncertainty.
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