Hi Victor, Rusmin and Adam,
In the bonus video on Investor Psychology, it was mentioned that the level of cash one decides to keep should commensurate with the valuation of the overall market. I also heard that in your opinion, the Singapore market is currently at fair value (not sure when the video was recorded but PEs have been on the rise in the last few months) and thus we have to search for good companies and buy them at fair value, otherwise, our hard earned monies could be better off left in the bank whilst we wait for valuations to become attractive again.
Bearing in mind the above, could you share (if it is not too confidential), the percentage of cash in your portfolios now. Will this cash percentage vary with the size of your portfolio, e.g., $100k to $100M. Thank you.
The bonus video was recorded a few years back when the market condition is at fair value. From August 2015 to Jan 2016, the market crash a bit and the market valuation was undervalued, that is where our cash position drop to only 3%. Currently, the market value had increase back to fair value and our cash position is at around 28%. Regardless, the portfolio size, we always goes in term of percentage.
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