Warren Buffett Reveals How Much CASH You Should Hold

Warren Buffett has a sizable cash position, but how much cash should you hold in your investment portfolio? Buffett controls the cash position of Berkshire Hathaway, and as a result, always has a portion of his portfolio sitting in cash. But, as a smaller investor - his advise is different. You've probably heard the saying, Cash is King, so this is a very important video for all investors in the stock market, especially with a possible 2020 recession upcoming.

I get asked time and time again - how much cash should you hold in your investment account? I personally like to hold around 20% of my portfolio value in cash, however I thought it would be good for you to hear this answer from Warren Buffett himself - the greatest investor of all time.

#Buffett #StockMarket #PositiveInvesting

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[PositiveInvesting]

*Cash is King!* I personally hold 20% of my portfolio in Cash. What do you think is a good allocation of cash in your portfolio?

[nicola-socialmediasuccess]

Hey random person scrolling through the comments, I just want to say that if you keep working hard and improving yourself, you can achieve your most crazy goals. Stay positive and never give up

[silverwhalenz]

Less than 2%, always held 30% but last December I went on a spending spree

[Chris..]

I keep about 12% then deploy it during a market crash/sell off. Then rebuild it

[billyjohnson]

20% is good so if the market drops you can buy more. If no cash you can’t take advantage of lower prices

[mplslawnguy]

Cash in a portfolio and cash in an emergency fund are different things. You should always have cash on hand to pay for unexpected large expenses. This is not cash that is waiting to be invested or anything else, it's just for emergency big ticket items, nothing more. The last thing you want to do is sell stock to pay for an emergency, more often than not it's not timed well and you lose money. Timing the market is a fools errand anyways.

[Ditchthemap]

Before 2019 I would say 0% in cash (other than living expenses, maybe $5, 000 or so). No I have 6% in cash and another 5% in gold. I will be shifting that up to 12.5% cash and 7.5% in gold over the next few months.

[InvestingRobinhoodInvestor]

Holding cash allows investors to buy when there's opportunities!

[joegraebe]

Oh man I have a large amount of cash currently I’m holding a lot more because of how high the market is currently

[InfinitelyManic]

25% cash in portfolio for cash secured puts. Other cash outside portfolio for emergency funds & short term pending projects.

[dividendincome]

Just checked my Roth and it’s at 37.8% cash. My brokerage is fully invested into dividend stocks with no cash sitting in the account but I can add some whenever I want to add to a position

[mccoyji]

I set my 401k at 60/40 60 stable and 40 large cap stocks. Contribute new funds at 60/40. Now the mix in the account is 50/50. I'll let it ride and will have cash to buy low when the market drops again from the next variant scare.

[wwiiznm]

Great video! There is no one size fits all. I keep about 10% in cash. Keep the awesome content coming!

[NickPeitsch]

I hold 0 cash in my investment account.

I hold investments in my investment cash, while I hold all of my cash in a high interest savings account!

[lawndogmoon]

An idea for a future video - your thoughts on tech stocks, especially SAAS stocks dropping in greatly value this month.

[roconnor]

I've got 40%. I know that's extremely high, but so are valuations, and I'm not getting any younger!

[twitchellmartis]

When you say 20% in cash does that mean in your investment for purchasing stocks in the future...or does than mean having emergency funds?

[Knowmoneyknowlife]

So since I own everything I have I should just invest it all? I don’t have any debt. I’ve been holding my 6 months worth of expenses but I already live off of 40% of my active income. (Not including any of my dividend payouts)

[MENSA.lady]

How much >? Depends on your personal circumstances but I suggest to cover 2 months worth of your normal expenditure. That's what you spend on housing, rent or mortgage, Utility bills, Travel to/from work and food. If you have other unavoidable monthly costs add these as well.

When it all goes pear shaped that gives you time to resolve the problems or convert other assets into cash.

[floridafishorry]

I hold Activision Blizzard, Tesla, Nvidia, Johnson & Johnson, and Southwest airlines. my portfolio has performed very well. I want to add more tech to my portfolio.