Why ‘cash is not trash’ in a stock market crash, explains Robert Kiyosaki

When markets are soaring, cash usually looks boring. It does not rally like stocks, shine like gold, or spark excitement like Bitcoin. But when panic hits and asset prices tumble, cash can suddenly become the most useful thing in an investor’s portfolio. That is the point Rich Dad Poor Dad author Robert Kiyosaki tried to drive home in his latest post on X, where he argued that liquidity matters most when markets are in distress, not when they are flying high.

“CASH is not TRASH in a CRASH,” Kiyosaki said in a post on X, distilling his view into a punchy line. The message was simple: in a market selloff, cash is not just safety. It is opportunity.

Kiyosaki linked that idea to Warren Buffett, saying the veteran investor’s decision to sit on billions in cash may be less about fear and more about patience. In Kiyosaki’s framing, cash is “dry powder” — money held back so it can be deployed when valuable assets are available at distressed prices.

“Because he is ‘keeping his powder dry’ a.k.a. He is in CASH so he can buy priceless assets….after the crash and are on sale,” Kiyosaki said, referring to why Buffett may be holding billions in cash. That is what makes cash so valuable in a downturn.

Why cash gives investors an edge in a crash

Investors who hold cash are less likely to be forced sellers when markets crack. They do not need to dump quality assets at weak prices just to raise money. Instead, they can stay patient and look for opportunities that emerge when others are under pressure.

Kiyosaki also stressed that simply holding cash is not enough unless there is a plan attached to it. “If you do not have a plan for your cash….during a crash….the smartest thing you may consider doing is….nothing,” he said. That may be the most practical part of his post. Cash without discipline can end up doing little. But cash with a clear strategy can become a powerful tool.

He also explained how he is using his own money. Kiyosaki said he had recently taken millions in cash and bought more oil wells, gold, silver and Bitcoin. He added that he believed gold, silver and Bitcoin could rise after a major crash, while higher tension around the Strait of Hormuz could continue to support oil prices from his Texas wells. At the same time, he admitted that he could be wrong and pointed out that he still has cash flow from his real estate and businesses.

“Trust you do what is safe and best for you. Take care and good luck,” Kiyosaki said. That note of caution is what keeps the message grounded.

His larger point was not that everyone should blindly copy his bets. It was that cash has a role, especially when markets are chaotic. Cash is not powerful because it predicts the future perfectly. It is powerful because it gives investors time, choice and resilience when the future turns messy. In a crash, those things can matter just as much as returns.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.