Tom Bilyeu

Third, I'm maintaining enough liquidity to preserve my optionality.

That's such an incredible weapon right now.

It is not a weakness.

I know a lot of people are gonna warn you that it is.

Warren Buffett built a $381 billion cash pile while I'm sure a lot of people were laughing at him.

He's not scared, I think wisely so.

He's giving himself choices, namely the ability to follow the great advice, to be greedy when everyone else is terrified, to buy great assets at panic prices while everybody else is being forced to sell.

I'm keeping enough cash on hand to cover three years, but I always advise people to at least keep six to 12 months of cash so that you wouldn't need to change your lifestyle if something goes wrong.

Not because cash is a great long-term investment, it's not.

Odds are it's just gonna get eaten by inflation if you're holding dollars, but I do it because without that buffer, you become one of the people who gets forced to sell at the worst possible time.

The goal is to never be forced to sell ever.

Fourth, I'm, as always, diversifying across economic forces, not just ticker symbols.

Owning 10 different stocks is 10 bets on equities.

Real diversification means assets that respond differently to the same stressor.

Hard assets, commodities, gold, Bitcoin, equities, and yes, personally, I do not plan to sell my gold

even after its worst week in 43 years.

Listen, that's just me, you need to make up your own mind.

I'm not saying you guys should do the same, but my mental model is that despite the people being forced to sell it right now, it's still a good hedge against massive uncertainty that I see looming on the horizon.

Lastly, do not panic.

None of what I'm telling you is meant as a prediction that 2008 is about to repeat.