Buffett's logic is simple:

Every few years a market crash happens. It will reset valuations by 50-80%.

Nobody knows when and how it will happen.

But it will.

Having cash on the side is the magic bullett pros use to make above market average returns.

The market crashes - they start putting capital to work - 1-3 years later - they harvest 5-10x with ease.

Templeton did this, Buffett does it.

Don't believe it? Then look at the years 2021 - 2024.

Thos who had capital for tech investments in 2023 - when nobody wanted tech and deep tech stock - now bring in the harvest.

3 examples:

Nvidia 10x+

Palantir 10x +

Meta. 5x+