Holding Cash is Riskier than you Thinkby Bill Miller
Many value investors have a very particular view of when things are cheap and when they’re expensive and they should hold cash. They portray holding cash as a risk-reduction method. My view is that’s just taking on a different risk. You’re betting there is going to be regular cyclicality and things are going to get cheap again and you’re going to be able to buy them. But if they don’t, you’re screwed. You’ll end up like the guys that have been bearish for 20 years and don’t have any assets any more.