Stock Market Portfolio 90 Percent In Cash Because Of Value Investing

Updated on

My stock market portfolio is 90 percent in cash because of value investing. Actually, the value got unlocked in 2018 and therefore I have a high cash balance. Also, as a value investor, I don’t rush into new purchases, so when the value will be there, I’ll buy more. But that depends on my research done, and on what happens in the stock market in 2019.

Stock Market Portfolio 90 Percent In Cash Because Of Value Investing

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q3 hedge fund letters, conference, scoops etc


Good day fellow investors. I recently mentioned that I'm 90 percent in cash when looking at my stock market location in my life. Plus I'm even will be selling my real estate and that might look like a market timer but I'm not. I'm a value investor and I want to explain in this video why am I so much in cash. Because that's how it happened. It's not that I'm trying to time the market. I have spent special criteria that allows me to buy or not which is separated from what the market does when I in investment meets my criteria. I don't care about the market. I want to explain that today I have two portfolios which make all of my stock market holdings want. One is called The 100 thousand portfolio or a lump sum one because I invested 100000 in it and the other is that 10k small portfolio with monthly additions that I launched in May 2018. So the lump sum portfolio I publicly launched two days ago and you can all follow it if you wish. And I really want to make everything public so that people can see what I do. And for now I have only one position that makes 10 percent of the portfolio. That's it. And the question is why I have more. Well when you look at my stock market portfolio my largest position in January 2000 18 was to have some resources that did thankfully very well and very fast that developed very fast. I sold everything through 2000 18 balancing my risk. The last one the last part was at the offer from Sien mining.

So that unlocked a lot of cash. Plus there has been some other cash that I had to pay taxes things like that get back from taxes and now I have a lot of cash. Not because of my market timing because I am patient when I deployed that cash I like to play with the Buffett punch card because it really gives me discipline patience to find the best investments. As we discussed in the Buffett patient video discussing his Coca-Cola story how he waited 50 years to buy the company. So applying the same patience I wait. That company really fits my investing criteria and only then I buy the market. The economy. Yes it affects my long term earnings calculations what can happen was the risk reward. But it doesn't really affect my buying decisions. I just wait for the business and the business earnings to beat my buying point compared to the price earnings yield of at least 50 percent off a good business and then I buy it no matter what will happen in the economy. If then the stock market drops and the stock drops even more. I'm just ready to buy more. That's it. On the small market portfolio that is 10000 from May and then I invested 8000 every 8000 every month for the past eight months. We are as off today Friday for January when I'm filming this. We are at eighteen thousand 341 so we are positive for the year but this is irrelevant in the short term.

The point here is that I'm 40 percent in stocks and I'm constantly doing research to find great investments and here the risk tolerance is a little bit more because eight thousandth and I plan to add a thousand dollars a month for the next nineteen point five years. So that's two hundred forty six forty four thousand. Over the next 20 years when I discount that the 10 percent discount rate it comes around 120 as the total value of the portfolio. So even less than 10 percent here but that allow here myself to have a little bit more risk because I don't need to be dead certain about the stock because if I make.

Leave a Comment