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What to do with all this cash?
Last week, I trimmed some $CELH (tempted to trim some more before earnings, since I almost top ticked it). I also sold my $RVLV position after bad earnings, and $AVLR after the buyout was announced at basically the stock price. Between these sells (and rare Ws) and my payroll contribution, my cash balance is higher than it's likely ever been.
Unfortunately for me, I don't trust this rally and feel like we have another move down, even just back to where we were a few weeks ago, not necessarily new lows. But patience is not my strong suit by any means, and life has gotten in the way of research and studying, and I haven't quite thought out my process like @scorebdinvestor to systematically identify potential targets (it's in progress, I swear).
So what the heck do I do with this cash? Sit on it? S&P index until I figure out what to buy? Dilemmas dilemmas..
It's always tough to know what to do with cash. Usually, I like to know what I will do with proceeds before I get them. IE, if I am selling this stock, will the proceeds be utilised in a superior way, for a superior opportunity?
But life doesn't always work out that way, and sometimes the need to sell something comes before you have time to examine what will be done with the cash you raise as a result of selling.
One thing to note, don't be in a rush. Whilst cash is a terrible place to have capital in the very long-term, there is nothing wrong with holding some in the short-term.
Below are some quotes from Chuck Akre on holding cash that you might like:
