Why Bill Gates, Warren Buffett, and I Are Stockpiling Cash: Permission Slips for Business Growth

Commentary On Wealth Issue #5

“If you don’t have a business that is a valuable asset, you’re on the hamster wheel. You’re working harder and harder just to stay in the same place.”
— Daniel Priestly, 24 Assets

Check this out: Bill Gates recently liquidated $1.7 billion (yes, with a B) of his portfolio, and it's now sitting in cash. Warren Buffett? He's holding a casual $189 billion—again, with a B. Meanwhile, as I look at my own accounts, across several different business entities, I’m holding onto about a million in cash. Now, I know what you’re thinking—million starts with an M, and I’d love to trade up to that B, but let’s be real, a million in liquidity is still nothing to sneeze at.

But here’s the real question—why are Gates, Buffett, and I sitting on this kind of cash? What’s the deal with Berkshire Hathaway and Brad Gibb holding back, not dumping all of this into the market or big investments right now? What’s the game plan?

Here’s the answer: we’re not sitting still. We’re positioning ourselves for growth.

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Why I’m Stockpiling Cash

Now, let me clear something up: I’m not hoarding cash just to feel safe. That cash isn’t sitting around doing nothing. It’s there to give me permission. Permission to grow. Without liquidity, you’re stuck. You can’t expand, can’t hire the talent you need, can’t take advantage of opportunities when they appear.

In business, growth requires two things: access to capital and the ability to manage risk. For example, as my company grows, I need to take on leverage—whether it’s financing, hiring, or new investments. But here’s the catch: none of that happens without cash on hand. Cash is what gives you permission to take calculated risks. It’s the buffer that lets you grow while managing uncertainty.

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Cash as a Permission Slip: Why It Matters

Think of cash as your permission slip. It’s not there to make you feel comfortable; it’s there to give you the flexibility to act. Need to hire more people? Cash gives you the ability to do it without the fear of what the next quarter might bring. Want to invest in new technology or infrastructure? Cash allows you to make that leap. And when things don’t go as planned, that cash is your safety net—it keeps you from having to scramble or make panic-driven decisions.

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The Misunderstood Power of Debt: It’s Not Your Enemy

Here’s a little secret: debt isn’t the enemy. Businesses don’t go bankrupt because they have debt—they go under when they run out of cash. Debt is just a tool, and if you pair it with liquidity, it can fuel your growth. I’m intentionally taking on more debt right now, but I’m doing it with a pile of cash sitting on the sidelines, ready to back me up.

Sound crazy? Maybe. But that’s how you grow smart in a world full of uncertainty. Holding cash while taking on strategic debt positions you to grab opportunities while others are left stuck in neutral. Debt, when used wisely, is a tool. Cash makes it possible.

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The Hidden Opportunity: Talent and Debt Are Going on Sale

I believe that talent, debt, and commercial real estate are all about to go on sale. If you’re sitting on cash, you’ll be in the perfect position to snap them up. The best opportunities come to those who are prepared. The market won’t wait for you to catch up.

If you don’t have your cash ready, you’ll be left on the sidelines, watching as others pick up the best talent, lock in the cheapest debt, and grab prime real estate. This is the moment to act, but only if you’re prepared.

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Practical Takeaways for Entrepreneurs

1. Cash is your permission slip – It allows you to take strategic risks, whether through leveraging debt or hiring top talent.

2. Don’t fear debt – Fear running out of cash. Keep a healthy reserve and use debt as a tool for growth.

3. Prepare for opportunities – Stockpile cash now, so you’re ready to move when the time is right.

4. Be proactive – Don’t let a lack of liquidity hold back your business growth. Be intentional about your cash strategy.

Ready for the Next Step?

The bottom line? The businesses that thrive in the coming years will be the ones sitting on cash and poised to move fast. So, what are you doing to build your cash reserves and position yourself for growth?

If you’re ready to talk strategy, let’s chat. I’ll show you how I’m preparing for the opportunities ahead, and how you can get set up to do the same.

Live Rich. Finish Wealthy.

Brad Gibb

The Sovereign Entrepreneur

PS - If you’ve made it this far, I’ve got a gift for you. To help you build wealth that goes beyond your business and protects you from uncertainty, I’ve put together a 3-part Wealth Codex training – and it’s free. It's the roadmap to financial sovereignty, designed specifically for entrepreneurs like you. Grab your access here and start building lasting wealth today.