In this segment of Backstage Pass, recorded on Nov. 17, Fool contributors Rachel Warren, Travis Hoium, and Connor Allen discuss their approaches to building cash positions while consistently buying stocks. 

Rachel Warren: We had a question from ProShopGuy following up on our discussion of being a 100% invested in stocks. He says, "When you say you are a 100% in stocks, does that mean you do not have any cash position in your portfolio so you're investing immediately as you get new capital or no concern for high-market valuations."

Well, I'll say for me personally, when I say that, I mean that my investment portfolio consists 100% of stocks.

I also work on, separately from that, on building my cash position both for a rainy day as well as to reinvest. I also habitually reinvest my dividends, which is easy to do. I invest on the Robinhood platform. That's what I meant by that. What about you guys?

Connor Allen: Personally, I take the old David Gardner approach. I stay a 100% invested all the time in any new money that comes in. I might build up some cash if I'm a little bit concerned about some different valuations, but I stay a 100% invested unless new cash is coming into my account. I sometimes build up a cash position, but I never sell anything to just hold cash.

Rachel Warren: Absolutely.

Travis Hoium: Yeah. I generally do the same. As I'm building portfolios for my kids we are just adding to that on a monthly basis. Then it's like once you get enough to buy a position in something or something piques my interest.

I don't intentionally keep a lot of cash, I guess is what I'm trying to say. But as it builds over time, I look at adding in that way. Try to stay as little cash as possible, but not opposed to it either.

Rachel Warren: No, for me, I think that it depends for every investor, but for sure, continuously staying invested in the stock market is very important. I think that's been particularly evidenced in recent weeks.

In terms of concerns for high-market evaluations. For me, I focus more on the business. I am willing to pay a premium for a business that I believe in that I think is an excellent company. And I also think that's where fractional investing, I've talked about that before, could be a great thing if there is a company that's just in same price, like Shopify for [laughs] example, that can be a great area where fractional investing can come in.