Aswath Damodaran: Cash has a different meaning today

NYU professor Aswath Damodaran recently stopped by the podcast ‘Invest like the best’. Here, they discuss a wide range of investment topics, including Damodaran’s personal investment in Nvidia.

During the interview, Damodaran highlights that he has noticed a significant change in his own and other investors’ behavior when it comes to cash holding.

Today, I’m acutely aware of cash when it’s sitting around. And that’s something that people have become used not to doing that you have to start because idle cash is losing cash. Because when you have 3% or 4% inflation, that cash is losing value, and you’ve got to get it into places. T-Bill rates might not stay at 5.5%, but they’re definitely not 0.

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