12-05-2014, 02:16 PM
Cash is king, baby!
I always keep a pretty good chunk of cash around, but I'm not sure that tells the whole story about fully versus not fully invested. I am a pretty big believer in the "emergency fund" concept, and having a big pile of cash in a savings account gives me significant peace of mind. But I am happy to have that amount wax and wane, and if we saw a significant pullback that presented lots of great buying opportunities, I would not hesitate to raid the "emergency" fund to buy great companies on sale. So there is generally not too much spare cash just sitting around in my brokerage account that is already earmarked for investing, but I do have a significant amount of cash that I also consider as "dry powder" in case opportunity knocks.
I always keep a pretty good chunk of cash around, but I'm not sure that tells the whole story about fully versus not fully invested. I am a pretty big believer in the "emergency fund" concept, and having a big pile of cash in a savings account gives me significant peace of mind. But I am happy to have that amount wax and wane, and if we saw a significant pullback that presented lots of great buying opportunities, I would not hesitate to raid the "emergency" fund to buy great companies on sale. So there is generally not too much spare cash just sitting around in my brokerage account that is already earmarked for investing, but I do have a significant amount of cash that I also consider as "dry powder" in case opportunity knocks.