The rule - what you don't do is more important than what you do. In natural systems, you need redundancy to make the system work better. People think that redundancies are inefficient. I think they're the most efficient thing in the world, if you do them right.
Redundancy is bad if you buy the same morning newspaper twice or if you have two subscriptions to the same website. But redundancy is fine if you have a stock of cash in the bank or if you're a company that needs oil and you have extra oil.
Let's assume that you have cash in the bank and there's a big crisis. You have dry powder. It will make you antifragile to have the extra dry powder if nobody else has money. You can buy anything you want. Cash is the opposite of leverage.
In fact, the number one indicator of fragility is leverage. It can be operational or financial. Leverage corresponds to people's overconfidence about the future.
Most people who have leverage will be completely squeezed in a crisis, and you will have cash.
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