This will be a short post.
I am recording down my cash proportion vs the net worth.
The proportion of cash alone vs the net worth is a pathetic 11.5%. Because of this low ratio, I have decided to let a few opportunities pass. Eg. did not purchase KERX shares (although I did spend quite some time reading up on it and its sole drug Auryxia).
However, if I include the cash in my CPF account (which I sort of treat it like a fixed deposit), Cash portion in my insurance policies & SRS, the proportion becomes 25.4%. My ideal figure will be min. 50% cash. It can only be done with the combination of savings, selling of overvalued stocks or stocks whose fundamentals have deteriorated drastically, and cash inflow from dividends.
Yeah I know. Cash is really not sexy, and not interesting. However,am really trying my best to up the percentage of cash as much as I could. Unfortunately, this percentage actually dropped from last month’s figure. I attribute that to the purchase of Nirvana Asia shares in the month of Oct 2015.
Cash will only be very enticing when the market crash (when cash is king).