I thought I’d write a quick post on the importance of holding large amounts of cash in your portfolio. I always try to hold at least 10% cash in my portfolio and usually like to hold around 30% in cash so I can have buying power. Nothing feels worse than finding great opportunities and not being able to capitalize on those opportunities because of a lack of cash in your portfolio. Holding cash gives you the ability to average down in long term positions. I’m currently holding about 30% cash in my portfolio and continuing to look for undervalued securities. I’m currently long Domtar and Alliance one International.