When markets are pushing higher, holding cash can feel like falling behind. I see it differently. For me, investing is about finding great businesses and paying the right price. I would rather miss the final stretch of a market rally than buy into a stock at a valuation I cannot justify. That’s why I’m comfortable keeping a healthy cash position while staying invested in a handful of quality companies. Cash isn’t a sign that I’ve run out of ideas – it’s simply part of my investment strategy.

Why I’m Not Fully Invested

Cash may not generate spectacular returns, but it gives me something equally valuable, which is flexibility. In case of a market correction, I am not forced to sell holdings at depressed prices. And here comes the silver lining – markets rarely move in a linear fashion. Inflation concerns, interest rate uncertainty, geopolitical tensions or economic slowdowns often drag strong companies down with the weak ones....