In "The Ascent of Money," Niall Ferguson highlights the stark contrast in returns for various investment types over time. Stock investments yielded the highest growth, increasing by over tenfold in real terms. Bonds also performed better than cash equivalents, rising significantly, while bills showed minimal growth. This illustrates the importance of investing in assets that outpace inflation rather than holding cash, which loses value over time.

Ferguson gives a compelling example of how an investment strategy that relies solely on cash can lead to substantial losses in buying power. He emphasizes that had his parents chosen to invest in cash instead of more productive assets such as stocks or bonds back in 1964, their investment would have depreciated greatly, losing 85% of its real value. This analysis serves as a warning against conservative cash holdings in investment strategies.