portfolio is money beyond the three- to six-months’ salary you’ve set aside in your safety fund. Instead, it’s a sum you’ve earmarked for the stock market but haven’t yet put to work. You might find that you want to accumulate a certain sum before looking for new investments.…Collecting cash over time for shopping funds, as you might opt to call it, will help you pounce on those opportunities and others. And while you’re stockpiling, don’t forget that you ought to get the highest return possible for your cash.
From Black Enterprise Guide to Investing by James A. Anderson. Copyright (c) 2001. Published by arrangement with John Wiley & Sons Inc. All rights reserved.