Larry WeidelMentor and Coach Empowering Million Dollar Earners

Someone once asked Warren Buffett why he keeps so much cash sitting around instead of putting all of

24 Aug 2026 · 0 min

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Warren Buffett keeps cash on hand as a margin of safety, like building a bridge stronger than it needs to be or designing for hurricanes worse than expected. The extra cushion protects against mistakes and uncertainty.

Most people live 2 weeks from being homeless. The bridge is rated for 40 tons. Build it for far more. If you're down in hurricane world, down where we are in South Florida, you better build it for 200-mile-an-hour winds if the maximum you're expecting to get is 140. You don't know when you're going to need that extra capacity. See, that's what it is— margin for error. And Buffett— margins of safety isn't efficiency. Warren Buffett, they say, why do you have so much cash? I may make mistakes. I need to protect myself.