I like six to 12 months emergency fund out of my portfolio. What would you say the average cash position should be for an equity investor? I think if you look at a lot of the world's greatest investors, they have gone through periods when 30 to 50 % of their portfolio is cash. You earn the return on that cash balance once every five or ten years. Rather than having being paid monthly in the interest rate in your savings account, you earn it in big chunks at some unknown time in the future.

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