Former media executive Mel Karmazin said he has pulled his money out of the volatile stock market.
"You don't really need to invest money if you believe the markets aren't right," he told CNBC.
"I own no shares of CBS. I own no media stock. I don't own Sirius stock. I don't any shares," he said, referring to two companies he once headed. "I'm not invested in the stock market anymore."
Before he was CEO of Sirius XM, Karmazin was president and COO at Viacom and CEO of CBS, CNBC reported.
"I believe that the media space is all growing and being valued on the basis of the fact that interest rates are so low. They're borrowing a whole lot of money [and] they're using that money to buy back their stock," he said.
CNBC explained that buying back shares reduces the float and boosts per-share earnings, which often times pushes up the stock price.
"When revenues are growing so modestly, the multiple that these companies are selling at are like all-time-high market multiples," he said. "I don't think the multiples are the right multiples," he said.
"There is a question about whether or not the insiders really believe that it's a great investment to put the cash to buy back their stock [themselves]."
He isn't alone in urging investors to grow a "cash cushion."
Newsmax Finance Insider Mohamed El-Erian
warns that holding a good chunk of cash in your investment portfolio is a shrew strategy considering the global current volatility.
"A good cushion of cash and cash equivalents in portfolios makes sense for both strategic and tactical reasons," he writes for the FT.com.
El-Erian, chief economic adviser to Allianz and chairman of President Barack Obama’s Global Development Council, warns that it is nearly impossible to predict future market directions because of the political, economic, social, and financial uncertainty in the world.
(Newsmax wire services contributed to this report).
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