--- title: "Meaning & Key Takeaway of: The bottom line is this: Cash, in modest…" description: "\"The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 perc..." image: "https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg" --- # The bottom line is this: Cash, in modest increments, has a… ![“The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent.” quote by Barry Ritholtz](https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg) [Download](https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg) [Open image](https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg) > “The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent.” [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Cash should be a small, modest part of a diversified portfolio, limited to a few percent unless you have exceptional expertise. **In simple terms:** Keep cash a tiny portion of investments. Key Takeaway Limit cash holdings to 2‑3% of portfolio. Themes investing riskmanagement diversification Mood practical cautious Type financial educational When to use this quote - retirement planning - market volatility - emergency fund - asset allocation Key Concepts finance portfolio theory behavioral economics Questions to Reflect On - How much cash do you currently hold? - What would you do with extra cash if you reduced it? A Different Perspective Cash can lose value over time; low allocation may miss opportunities. ★ ★ ★ ★ ★ No ratings yet [Bottom line](https://sms4smile.com/quotes/about/bottom-line/) [Customer](https://sms4smile.com/quotes/about/customer/) ## Related quotes > [Avoid second-quality issues in making up a portfolio unless they are demonstrable bargains.](https://sms4smile.com/quotes/benjamin-graham/avoid-second-quality-issues-in-making-up-a-portfolio-unless-they-are/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly…](https://sms4smile.com/quotes/barry-ritholtz/owning-a-variety-of-asset-classes-means-that-some-part-of-your/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [When markets are rallying, cash in the portfolio is a drag on performance, returning about zero.](https://sms4smile.com/quotes/barry-ritholtz/when-markets-are-rallying-cash-in-the-portfolio-is-a-drag-on/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [When it comes to investing, there is no such thing as a one-size-fits-all portfolio.](https://sms4smile.com/quotes/barry-ritholtz/when-it-comes-to-investing-there-is-no-such-thing-as-a-one-size-fits/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [The guys I dreamt of being like Phil Hoffman, Paul Giamatti, John Goodman, those are the guys I was aiming to become, and I…](https://sms4smile.com/quotes/paul-walter-hauser/the-guys-i-dreamt-of-being-like-phil-hoffman-paul-giamatti-john/) [Paul Walter Hauser](https://sms4smile.com/quotes/author/paul-walter-hauser/) > [The more playoff games and Super Bowls and things of that nature that you're in obviously is going to build your portfolio and raise…](https://sms4smile.com/quotes/larry-fitzgerald/the-more-playoff-games-and-super-bowls-and-things-of-that-nature-that/) [Larry Fitzgerald](https://sms4smile.com/quotes/author/larry-fitzgerald/) > [The tourism ministry may not have been the greatest portfolio, but no one can say that 'Chiranjeevi left without doing anything'. I have left…](https://sms4smile.com/quotes/chiranjeevi/the-tourism-ministry-may-not-have-been-the-greatest-portfolio-but-no/) [Chiranjeevi](https://sms4smile.com/quotes/author/chiranjeevi/) > [People might just decide, 'Yeah, I'll diversify my portfolio. I'll live in a rental.' That is a very sensible thing for many people to…](https://sms4smile.com/quotes/robert-j-shiller/people-might-just-decide-yeah-i-ll-diversify-my-portfolio-i-ll-live/) [Robert J. Shiller](https://sms4smile.com/quotes/author/robert-j-shiller/) > [If you're going to be a model, what's going to get you the job on a go-see and makes you stand out, it might…](https://sms4smile.com/quotes/andre-leon-talley/if-you-re-going-to-be-a-model-what-s-going-to-get-you-the-job-on-a-go/) [Andre Leon Talley](https://sms4smile.com/quotes/author/andre-leon-talley/) > [I'm looking to expand my portfolio while I'm on top and while I'm young.](https://sms4smile.com/quotes/floyd-mayweather-jr/i-m-looking-to-expand-my-portfolio-while-i-m-on-top-and-while-i-m/) [Floyd Mayweather, Jr](https://sms4smile.com/quotes/author/floyd-mayweather-jr/) > [Some architects, such as John Lautner, never really did anything other than houses. His entire portfolio is basically residential. There's nothing wrong with that.](https://sms4smile.com/quotes/steven-holl/some-architects-such-as-john-lautner-never-really-did-anything-other/) [Steven Holl](https://sms4smile.com/quotes/author/steven-holl/) > [I did a bit of modeling before I took up acting, and I was up for this big campaign - I can't remember which…](https://sms4smile.com/quotes/rupert-penry-jones/i-did-a-bit-of-modeling-before-i-took-up-acting-and-i-was-up-for-this/) [Rupert Penry-Jones](https://sms4smile.com/quotes/author/rupert-penry-jones/) > [Both cheap value stocks and more glamorous growth stocks can work well in a portfolio - if done right.](https://sms4smile.com/quotes/kenneth-fisher/both-cheap-value-stocks-and-more-glamorous-growth-stocks-can-work/) [Kenneth Fisher](https://sms4smile.com/quotes/author/kenneth-fisher/) > [I was hoping to attend the School of Visual Arts and had a portfolio built up.](https://sms4smile.com/quotes/kevin-dillon/i-was-hoping-to-attend-the-school-of-visual-arts-and-had-a-portfolio/) [Kevin Dillon](https://sms4smile.com/quotes/author/kevin-dillon/) > [If you are an investor who's retired and hopes to live off the income that your portfolio is generating, then we would focus just…](https://sms4smile.com/quotes/james-o-shaughnessy/if-you-are-an-investor-who-s-retired-and-hopes-to-live-off-the-income/) [James O'Shaughnessy](https://sms4smile.com/quotes/author/james-o-shaughnessy/) ## More by Barry Ritholtz > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term…](https://sms4smile.com/quotes/barry-ritholtz/amongst-the-financial-twitterati-the-term-muppets-has-come-to/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going…](https://sms4smile.com/quotes/barry-ritholtz/it-is-important-for-investors-to-understand-what-they-do-and-don-t/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [The good news is that economists are intelligent, engaging and often charming folks. The bad news is their work is often of little use…](https://sms4smile.com/quotes/barry-ritholtz/the-good-news-is-that-economists-are-intelligent-engaging-and-often/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [The electronics industry expanded rapidly and the seeds for the semiconductor and software revolution were planted. The postwar period also saw the suburbanization of…](https://sms4smile.com/quotes/barry-ritholtz/the-electronics-industry-expanded-rapidly-and-the-seeds-for-the/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it's a reminder of just how economically distressed…](https://sms4smile.com/quotes/barry-ritholtz/footage-of-people-camped-out-at-best-buy-or-elsewhere-is-not-remotely/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Markets are frequently ahead of, and often out of sync with, the economy.](https://sms4smile.com/quotes/barry-ritholtz/markets-are-frequently-ahead-of-and-often-out-of-sync-with-the-economy/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Narrative drives most of economics. Everything seems to be part of a story, and how that story is told often leads to critical error.](https://sms4smile.com/quotes/barry-ritholtz/narrative-drives-most-of-economics-everything-seems-to-be-part-of-a/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [This ugly duckling investment will likely need time - quarters, or even years - to blossom into a beautiful swan.](https://sms4smile.com/quotes/barry-ritholtz/this-ugly-duckling-investment-will-likely-need-time-quarters-or-even/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Yearly data put the rest of the noise into perspective. Most of the weekly or monthly random up-and-down movements get smoothed out. Ultimately, this…](https://sms4smile.com/quotes/barry-ritholtz/yearly-data-put-the-rest-of-the-noise-into-perspective-most-of-the/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > ['Returnless risk' is not how you prepare for a decent retirement.](https://sms4smile.com/quotes/barry-ritholtz/returnless-risk-is-not-how-you-prepare-for-a-decent-retirement/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [A number of bloggers in economics and the financial sector have risen to prominence through the sheer strength of their work. Note it was…](https://sms4smile.com/quotes/barry-ritholtz/a-number-of-bloggers-in-economics-and-the-financial-sector-have-risen/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [TV producers want ratings and are willing to do nearly anything to get them. They gin up artificial conflicts and create an urgency for…](https://sms4smile.com/quotes/barry-ritholtz/tv-producers-want-ratings-and-are-willing-to-do-nearly-anything-to/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many ways one…](https://sms4smile.com/quotes/barry-ritholtz/asset-managers-have-different-approaches-and-i-don-t-wish-to-suggest/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [There is a shortage of doctors, and the American Medical Association is aiming to keep it that way.](https://sms4smile.com/quotes/barry-ritholtz/there-is-a-shortage-of-doctors-and-the-american-medical-association/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [We love a tale of heroes and villains and conflicts requiring a neat resolution.](https://sms4smile.com/quotes/barry-ritholtz/we-love-a-tale-of-heroes-and-villains-and-conflicts-requiring-a-neat/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) [Explore all 103 Barry Ritholtz quotes ](https://sms4smile.com/quotes/author/barry-ritholtz/) ## More Any quotes > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term…](https://sms4smile.com/quotes/barry-ritholtz/amongst-the-financial-twitterati-the-term-muppets-has-come-to/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [At the very beginning, I was a page at Letterman, and I freelanced for any place that would let me write any word. I…](https://sms4smile.com/quotes/ben-schwartz/at-the-very-beginning-i-was-a-page-at-letterman-and-i-freelanced-for/) [Ben Schwartz](https://sms4smile.com/quotes/author/ben-schwartz/) > [Any incarnation of 'Batman' I am delighted to do.](https://sms4smile.com/quotes/adam-west/any-incarnation-of-batman-i-am-delighted-to-do/) [Adam West](https://sms4smile.com/quotes/author/adam-west/) > [If we accept being talked to any kind of a way, then we are telling ourselves we are not quite worth the best. And…](https://sms4smile.com/quotes/maya-angelou/if-we-accept-being-talked-to-any-kind-of-a-way-then-we-are-telling/) [Maya Angelou](https://sms4smile.com/quotes/author/maya-angelou/) > [A lot of people have been saying 'The 100' reminds them of 'Lord Of The Flies,' 'Lost' and 'Battlestar Galactica,' and all of those…](https://sms4smile.com/quotes/marie-avgeropoulos/a-lot-of-people-have-been-saying-the-100-reminds-them-of-lord-of-the/) [Marie Avgeropoulos](https://sms4smile.com/quotes/author/marie-avgeropoulos/) > [I have never been in, nor have I had any strong particular desire to be in, what is termed a costume drama, but I…](https://sms4smile.com/quotes/martin-freeman/i-have-never-been-in-nor-have-i-had-any-strong-particular-desire-to/) [Martin Freeman](https://sms4smile.com/quotes/author/martin-freeman/) > [We were so poor as kids. I didn't even see a bathtub, running water, hot water, commode - we didn't have any of that.…](https://sms4smile.com/quotes/phil-robertson/we-were-so-poor-as-kids-i-didn-t-even-see-a-bathtub-running-water-hot/) [Phil Robertson](https://sms4smile.com/quotes/author/phil-robertson/) > [We earned any fans with the way we play.](https://sms4smile.com/quotes/jimmy-white/we-earned-any-fans-with-the-way-we-play/) [Jimmy White](https://sms4smile.com/quotes/author/jimmy-white/) > [Hard work and a good education will take you further than any government program.](https://sms4smile.com/quotes/aaron-schock/hard-work-and-a-good-education-will-take-you-further-than-any/) [Aaron Schock](https://sms4smile.com/quotes/author/aaron-schock/) > [Anyone who's read my 'Terror in the Skies' series knows that I have not been writing with an eye toward approval from any government…](https://sms4smile.com/quotes/annie-jacobsen/anyone-who-s-read-my-terror-in-the-skies-series-knows-that-i-have-not/) [Annie Jacobsen](https://sms4smile.com/quotes/author/annie-jacobsen/) > [The system in Germany is different, as you sign up with a company for two or three years, and you work exclusively with them;…](https://sms4smile.com/quotes/tom-wlaschiha/the-system-in-germany-is-different-as-you-sign-up-with-a-company-for/) [Tom Wlaschiha](https://sms4smile.com/quotes/author/tom-wlaschiha/) > [I'm writing about real things. Real people. Real characters. You have to believe what I write about is true or you wouldn't pay any…](https://sms4smile.com/quotes/lou-reed/i-m-writing-about-real-things-real-people-real-characters-you-have-to/) [Lou Reed](https://sms4smile.com/quotes/author/lou-reed/) > [I haven't shut any doors, and I'm really open to anything, so I think it's just about the material and what is going to…](https://sms4smile.com/quotes/danielle-panabaker/i-haven-t-shut-any-doors-and-i-m-really-open-to-anything-so-i-think/) [Danielle Panabaker](https://sms4smile.com/quotes/author/danielle-panabaker/) > [I never want to look back on any moment and say I could have done more. So I go all in.](https://sms4smile.com/quotes/scott-haze/i-never-want-to-look-back-on-any-moment-and-say-i-could-have-done/) [Scott Haze](https://sms4smile.com/quotes/author/scott-haze/) > [I love the sea, but I avoid any sort of seaside resort that has skyscrapers or seaside entertainments.](https://sms4smile.com/quotes/quentin-blake/i-love-the-sea-but-i-avoid-any-sort-of-seaside-resort-that-has/) [Quentin Blake](https://sms4smile.com/quotes/author/quentin-blake/) Browse all 6,938 Any quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent.", "creator": { "@type": "Person", "name": "Barry Ritholtz" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/barry-ritholtz/the-bottom-line-is-this-cash-in-modest-increments-has-a-role-in-any/", "about": { "@type": "Thing", "name": "Any" }, "@id": "https://sms4smile.com/quotes/barry-ritholtz/the-bottom-line-is-this-cash-in-modest-increments-has-a-role-in-any/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg", "contentUrl": "https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg", "url": "https://sms4smile.com/quotes/i/fc7/barry-ritholtz-5065_any_the-bottom-line-is-this-cash-in-modest-i_805919.jpg", "width": 1080, "height": 1080, "caption": "“The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren…” — Barry Ritholtz", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Barry Ritholtz", "item": "https://sms4smile.com/quotes/author/barry-ritholtz/" }, { "@type": "ListItem", "position": 4, "name": "The bottom line is this: Cash,...", "item": "https://sms4smile.com/quotes/barry-ritholtz/the-bottom-line-is-this-cash-in-modest-increments-has-a-role-in-any/" } ], "@id": "https://sms4smile.com/quotes/barry-ritholtz/the-bottom-line-is-this-cash-in-modest-increments-has-a-role-in-any/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```