5 Cash-Heavy Funds for the Cautious Investor
Cash is not trash.
Following up on my theme of downside protection, I've gathered a few funds with big cash stakes that you might want to give a second look.
Funds with big cash stakes can lag in rallies, but I wouldn't pull the trigger on a good fund just for a bit of a slump. Funds with big cash stakes can do wonders in a downturn. But it goes beyond the cash stake itself.
Cash holders have an extra level of choosiness about their stocks and a wariness of losses that is reflected in the way the rest of the portfolio is run. It also is something that can be put to use in sell-offs, though I wouldn't go so far as to expect these managers to time their purchases perfectly.
Wally Weitz lives in Omaha, Nebraska, and he tries to invest like fellow Omahan Warren Buffett. So, it's no surprise that