Talk to me like I am a 5yr. old – part 2.

I have watched kids try to build tall towers with wooden blocks. They place one block on top of another over and over trying to build a tower, which falls over each time. The kid will start again, never changing their pattern of construction. What they are missing is a wider base that will allow them to gradually build a taller tower.
In the world of investing, a solid foundation is important to success. Our foundation is cash reserves. Cash reserves are not exciting, and generally do not move very much – this is what a sound foundation looks like.
A solid foundation will allow you to build your tower high enough to reach the stars.

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