Many people don’t understand why “Uncle Warren” (Buffett) holds about $400 billion in cash and doesn’t invest it. It could be that a big drop may happen in the near future, and maybe Buffett will have to wait another year. That’s fine—if time is long enough, there will always be opportunities. Cash is an “evergreen call option with no expiration date,” which can ensure that you can quickly buy high-quality assets when the market crashes.