Saturday, October 31, 2009

The "BIG" picture

I agree with the saying that "you can't manage what you don't measure" so, this is my "BIG" picture updated and I plan to do an update on the last day of every month. In terms of asset categories, I basically have them in these four:

Currency and deposits -- cash on hand
Shares and securities -- equity and bond
CPF/pension -- Central Provident Fund

Residential property -- two properties

I am financially independent and debt free -- I have outstanding housing and car loans but those debt amounts have already been deducted from cash on hand. I must be a fool not to borrow money from the bank when the interest rates are at all-time low.

In terms of Cash vs. Vested Capital, this is current split after the last 3 months of relentless buying of equities and bonds:

The majority of my equities are in Hong Kong and US with some exposure in Singapore. For bonds, I am vested in perpetual bonds that have at least a rating of BBB-. The only takeaway that I have is that I need to continue to invest my cash as the cash component is still too high. In terms of Equity vs Bond split, we have a 67% vs 33%.

I think the split looks fine for now but it does shows a profile of a conservative investor.

1 comment:

Marubozu said...

Good that you have extra cash on hand to pick up good blue chip when the deep correction comes.
You will be very successful.