One of the many investing mistakes I made during the early part of my investing career was to be rash with cash.
One salary hike, one bonus, or one big inflow of money (family gifts etc.) and I would invest the same into stocks I liked, irrespective of what the stock markets were doing.
Cash in bank was considered a wasted opportunity and every chance to “let-me-buy-stocks-now” was grabbed upon.
The question I used to ask myself was – “Why should I hold cash when it is paying nothing while stocks can grow my money much faster?”
However, over the years and after learning my lessons (from not holding cash) the hard way, I’ve found several reasons to ‘hold cash’.