I have previously done a post about ‘spring cleaning’ my stock portfolio on 5 March 2017 (read here). With equity valuations looking a bit rich, I reckon it would be good to raise the percentage of my cash holdings.
On 11 Feb 2017, I did a short post on an update to my portfolio. The percentage of my Savings & SRS (cash) then was at 13%. Earlier on 4 Sept 2016, the percentage of Savings then was only at 8% (read here).
I recently sold my Super Group shares (at $1.295 a share), just a couple of days prior to receiving the package pertaining to the delisting of Super Group (the realized profit at approx. 16% of the amount invested, excluding dividends received). Although the selling price was lower than the $1.30 delisting price, it was not a lot of difference.
The stock price of Super Group has been hovering at around $1.30 for quite some time (regardless of overall market performance).
I first started buying Super Group shares in June 2014- only selling once in April 2015 (small amount). I have been all the while accumulating. So in total, it has been less than 3 years. 16% for 3 years isn’t a lot – but then Super Group is one of my biggest holdings, and I am glad that it turned profitable at the last ‘minute’ due to the privatization offer.
“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
Well. time to say goodbye I reckon (even if I don’t sell the shares, the company will probably be delisted soon).
Anyway, now my cash holding has increased significantly – which is at 31%. It hasn’t been at this percentage for a long time.
This percentage is even greater than the percentage of my stock holdings (27%). I would say, the risk exposure to any market corrections or crash is at around 29% of my net worth (Stocks + Unit Trust), and maybe some of the Insurance Cash value. The rest will probably not be affected.
Having said that, the passive income from stock dividends will be super low this year (2017).
For the time being, I probably won’t sell any more stocks. I am pretty happy with most of my stock holdings for now. These are stocks that I can sleep soundly with, and ‘forget’.
Well, for the stock that I don’t really like (eg. Golden Agri) – the unrealised loss is still a lot. Nevertheless, I do believe that in the long term, as a cyclical stock, CPO prices will rise, and hence lifting up the stock price.