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di Giancarlo Nicoli

Remaining fully invested at all times is consistent with a relative-performance orientation. If one’s goal is to beat the market (particularly on a short-term basis) without falling significantly behind, it makes sense to remain 100 percent invested. Funds that would otherwise be idle must be invested in the market in order not to underperform the market.
Absolute-performance-oriented investors, by contrast, will buy only when investments meet absolute standards of value.
They will choose to be fully invested only when available opportunities are both sufficient in number and compelling in attractiveness, preferring to remain less than fully invested when both conditions are not met. In investing, there are times when the best thing to do is nothing at all.

From:  Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor, by Seth A. Klarman

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