No. of Recommendations: 8
Didn't you say half a year ago T-Bills with only 1-2 months remaining and the constant need to renew them is too much bother/work for you and that therefore you prefer to buy them with 1/2-3/4 year remaining? I conclude you expect to have better opportunities for your cash in a few months - - - for example a company with HQ in Omaha?
I don't remember saying that...but I say a lot of things : )
I've never bought T-bills before this month, so I wouldn't have been speaking from experience.
It's definitely less work to buy less often, though I doubt that's the main factor to consider in a sensible decision about term. The point of very short term notes (3 months typical, 6 months max) is that they are extraordinarily price stable and liquid, so they can be converted into cash on a moment's notice without fear of capital loss. As soon as you go longer, you're more or less forced to start to have a bit of an opinion about the future trajectory of rates because prices fluctuate.
Yes, I certainly do hope to have better opportunities for my cash within a year. I would very much welcome a brief price crash in our favourite firm, if nobody minds too much. Just look away.
Jim
