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This past Spring, at the Berkshire Hathaway 2005 shareholders meeting, Buffett said that an ordinary investor who keeps securities in a cash account with a major broker should be able to weather any looming financial meltdown. The disturbing implication was that marginable accounts may not be safe. Incidentally, this suggested that holding the securities in Street name (as opposed to holding paper certificates showing registration in your name) was OK, so long as the account was not marginable. Following the meeting, I immediately made sure that the vast majority of my family's securites were held in non-marginable accounts. Anyone else who shares these concerns may want to do the same.

just a little correction here...

there is
1)"street name"
2)your name
3)holding certificates

2 and 3 are not the same.

2 is usually achieved simply by having a cash account (and even then i think sometimes you have to specify to the broker that you want it on your name)

3 means that you require physical delivery of certificates and you have to pay a fee for that and thats a whole other thing. It's even safer.

I think buffett meant that as long as you do (2) it's ok. i.e. you don't need to have the actual certificates...but who knows...
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