tag:blogger.com,1999:blog-28021668.post2243264684378210825..comments2023-10-12T21:12:41.408+08:00Comments on Value Investment - Musicwhiz's Journey: July 2018 Portfolio SnapshotMusicwhizhttp://www.blogger.com/profile/10950754156386935254noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-28021668.post-32107937268698997922018-08-27T09:43:29.682+08:002018-08-27T09:43:29.682+08:00Hi INTJ,
Thanks for your comment. My portfolio do...Hi INTJ,<br /><br />Thanks for your comment. My portfolio does not include any bonds, but just equities and cash. So yes, the tracking is for my equity performance but I did not include the cash drag portion as cash is normally low (< 10%) and would not significantly impact overall returns.<br /><br />You are right - the portfolio is a mix of growth plus yield and the most important consideration is to protect against downside and to remain resilient through business and market cycles. It is a conscious decision in part because I have seen how an event like GFC can decimate one's portfolio if you select the wrong companies, and also the pernicious impact of owning lousy companies or highly indebted companies over the long-term (note that REITs are excluded from this definition of "highly indebted" due to the nature of their business and the composition of their asset base - mainly backed by hard physical assets i.e. real estate). The idea here is also to structure a portfolio which can weather most economic crises and down drafts, as the importance of the Balance Sheet and Cash Flow Statements are emphasized over the Profit and Loss Statement. It is not really a function of age though - it is more of a characteristic of the way I invest and my psychological profile. I have a tendency to watch out more for the downside while letting the upside take care of itself.<br /><br />I think you are wise to do cash accumulation as valuations are generally high in developed nations, especially in the USA. My job as an investor is also to not predict, but to prepare. While I agree it is good to hold cash in anticipation of a correction or crash, it is also beneficial to remain invested in strong companies for long-term compounding and to enjoy the dividends paid out over time too.<br /><br />Thanks and happy investing!Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-35071719769637655862018-08-27T00:31:40.811+08:002018-08-27T00:31:40.811+08:00Hi Musicwhiz,
Does your portfolio include bonds a...Hi Musicwhiz,<br /><br />Does your portfolio include bonds and cash equivalents? Or are you mainly tracking your equity returns /performance?<br /><br />The composition of your portfolio seems to suggest on minimising your downside rather than focusing on upside. Is this a conscious decision because of market cycles or because of your increased age / need to support dependents?<br /><br />I am also trending towards cash accumulation in the meanwhile. Although I cannot predict market cycles with any certainty, I was wary of the rally led by tech stocks and the recent highs of the US and china markets. Just giving my 2 cents. INTJhttps://www.blogger.com/profile/01423976981165427180noreply@blogger.com