*Had to update this as by the end of day March 2, 2018, along with some further trimming of some stock positions and an infusion of new cash into the accounts, cash has increased further from 62%.
As of the end of the day this Tuesday, cash now makes up
62% 70% of the entire portfolio, up 12% 20% from 50%. An old rich white guy once said:
“It takes character to sit with all that cash and to do nothing.
I didn’t get to where I am by going after mediocre opportunities.”
I’m neither old nor rich nor white, so I’m not sure if that advice applies. Anyways, my gut feeling is that the calm, steadily rising markets of 2017 to late-January 2018 are over. Volatility is back. It should open up opportunities to grab some core holdings at decent prices.
So, I sit in cash and wait for prices to reach my range.
As always, the only advice I have is to do as I say (index, dollar cost average, DRIP, and forget) and not as I do (what I’ve just written about).
You know what would be fun? Listing out all the stupid things I’ve bought and the total money I have lost doing so. I’ve probably made a bunch of errors of omission, but let’s take a look at those errors of commission.
I’d written parts of this in 2015 and never got around to publishing it. I’ve added additional colour commentary to it to finish out the story, so everything in italics are new, 2018 additions to the uncompleted 2015 draft.
Berkshire Hathaway is the company I know the best. This is the company that I would feel 100% fine with holding if the stock market, for some reason, closed for a few years. I would not lose any sleep in that type of scenario. I don’t know if there are any other companies I could definitely say that for with such conviction. 2014 is when I started buying shares. Then, I did an equal amount of selling and an equal amount of buying in 2015 – dumb. Then in 2016, I sold a bunch, like an ass, to buy stuff like Chipotle, which was a big mistake as I eventually sold the Chipotle position after a year at breakeven while Berkshire rose a bunch in 2016. After that, I learned my lesson and implemented my “Never Sell Berkshire Stock” rule: never sell Berkshire, unless it is trading at such an obscene premium that it would make Microsoft at the height of the dotcom bubble look amateurish. Berkshire is a foundational piece in the portfolio. Foundations shouldn’t be messed around with. Oh yeah, and one of these days I should probably get back to recording those shareholder’s letters…
No, the business we are starting does not involve landscape photography. That would, in all probability, be a terrible area of photography to try to make money. I’m drawn to landscapes though. When the lighting is right and the sky or vista before me looks beautiful, I’m instinctively drawn to pulling out the camera to capture the moment. Some people need to take photos of animals, or cars, or sports. I’m drawn by landscape. These are some photos I’ve taken with the Fujifilm X-T2 over the past half year as I learn the ins and outs of the camera.