Where to put cash in between purchases?

[Mike Neubauer]

Hey guys, 

I'm not a big fan of letting cash sit in the bank.  I'd prefer to have it invested in real estate.  However, when we are in between purchases or as cash starts to accumulate, we normally let the cash just sit in an account earning virtually nothing.  I'm curious as to what others do in this situation?  I'm thinking about moving some or all of that cash into an index fund and letting it sit in that until I'm ready to make my next purchase.  I like index funds, but I'm a buy and hold investor with stocks, real estate, everything, and I don't sell assets unless I have to. ...Probably because I don't really know the ramifications of selling.  If I let it sit for a couple months and then sell out of it, I'm going to have to pay fees and capital gains tax, I assume. Not sure if it's worth it at the end of the day, or just keep it in cash and try to buy more stuff quicker!  I'd love to hear your take! Thank you!