Warren Buffett: Cash is Oxygen

Posted by admin on Saturday, February 18, 2023

Meaning of Warren Buffett Money Quote: saying cash to a business is as essential as the air to breathe – when unavailable, business gasps. Warren Buffett said:

 

 

“Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent” — Warren Buffett

 

 

Warren Buffett compared cash to oxygen for a business to emphasize how important cash is for a company’s survival and operations. Just as humans need oxygen to breathe, businesses need cash to pay expenses, purchase supplies and materials, meet payroll, and cover other costs needed to operate on a day-to-day basis.

Without sufficient cash reserves, a business risks running into financial difficulties and potentially failing if it is unable to pay its bills. Buffett’s quote aims to highlight that cash, though often overlooked when plentiful, becomes the primary concern when reserves run low.

Categories: business Tagged:cashwarren buffett