Cash Proportion

This will be a short post.

singapore-loan-cash

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).

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About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room HDB flat.
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2 Responses to Cash Proportion

  1. Is your emergency fund separated from your spare cash for investment?
    If u include your emergency funds, maybe you will have a higher cash reserve.

    Like

    • apenquotes says:

      Nope. More or less the cash I have is also my emergency fund. Well, the cash I have at the moment is definitely sufficient to last me for min. 6 months or a year (and even more). Eg. In the event I become jobless or ill, or if anything happen to my family members.

      I did not really consider my flat in it, as I do need a place to stay no matter what.
      So yeah, slowly building up. Well, dividends help. I don’t think I have as much dividend as you. I did not set out to be a dividend investor at the beginning. My strategy was and still is to find good companies with strong growth. Some of my later companies (stocks which I bought from 2010 – 2011 onwards) did quite well, well others flopped like Sarine Tech and Super Group.
      However over time, I did notice the dividends (as the amount I invested increase, so did the dividends).

      Like

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