How much cash is too much cash?  That’s the topic of BR’s latest article, “How Much Cash Should You Hold In A Portfolio?“.  It’s a great question, and one I’ve struggled with repeatedly over the past few years.

According to BR:

The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent.

You already know that money management is a crucial part of your safe investing process; both portfolio and position sizing.  However, actually putting that money into the market is the hard part.  The psychological part of investing only comes into play after you’ve bought securities and have money at risk.

So what do you think?  How much cash is too much cash in your process?

Sources:

How Much Cash Should You Hold In A Portfolio?
http://www.ritholtz.com/blog/2013/12/the-story-is-not-the-music/