# CASH - Your current portfolio percentage %



## avrex (Nov 14, 2010)

Looking over the boards over the last while, many of our members are concerned about the current valuations of

Equities
We are worried that equitiy valuations are at a peak or overvalued.
We are waiting for a dip in the markets before we invest further.
Fixed Income
We are worried that a rise in interest rates will have an adverse effect on the value of our bond funds.
We are waiting for interest rates to rise before we contribute further to bond / fixed income funds.

For this thread, I'd like to concentrate on the third asset class, CASH.

I'm trying to gauge where people's comfort level is at, under the current market conditions.
So, here's the question. While we are waiting for better opportunities...

*How much Cash or near-Cash do you have?*

By near-Cash, I mean assets that can be readily exchanged for cash within a relatively short period of time.
(e.g., high interest savings account, cashable GICs, money market funds, etc.)

Please express your cash position as a percentage of your overall investment portfolio (RRSP, TFSA, non-registered).

Also feel free to provide any commentary as to why you have this percentage.
For example, your answer could be, "that's the percentage that allows me to sleep easily at night."


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## avrex (Nov 14, 2010)

I currently have *25%* of my portfolio in Cash.

My goal is to reduce this percentage. I'm still 10-15 years from retirement, so I'm continuing to research and look for opportunities to deploy my cash.


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## Rysto (Nov 22, 2010)

My target is 0% in my investment portfolio(I consider short-term savings, emergency funds and the like separately).

Currently I have a fair amount sitting around, waiting for TDW to allow me to contribute it to my TFSA.

Edit: The reason I don't like to hold cash is that my investment accounts are purely for the long-term, and I don't regard cash as being a suitable investment for the long-term.


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## DanFo (Apr 9, 2011)

I'm around 35-40 % cash (including GIC's) I'm fairly new to investing and just starting out slowly.


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## ChrisR (Jul 13, 2009)

I am about 20% in cash. My target is 0-5%.

Reasons I'm in cash right now:
- I fear Canadian equities are in for at least a minor correct this summer (as the world realizes that gold, oil and fertilizer aren't actually running out).
- There is little motivation to put money in "safe" investments that are paying a pittance.
- I've been waiting for the gov't to tell me how much RRSP space I have this year (which I finally found out yesterday).
- I've been too busy at work to make any transactions during the day!

Now that I know my RRSP space, I expect that I will be investing about 50% of my cash early next week, and will wait until Fall to invest the other 50%.


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## KaeJS (Sep 28, 2010)

My current cash is *2.6%*

Why?

Well, today is my birthday and I just turned 21. 
I have a very long time horizon. If things go sour I can just hold on.


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## Ethan (Aug 8, 2010)

As of Friday's close I'm 3.72% cash. I mostly invest in companies that have stable and consistent dividends so I'm not worried about short-term fluctuations. I take all my dividends in cash (ie no DRIP) and reinvest the proceeds in new stocks a couple times a year to avoid quarterly inactivity fees.

5% is my optimal level, at that level I have enough cash to purchase a stock if a good deal comes up.


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## Banalanal (Mar 28, 2011)

I have 50% of my portfolio in cash right now. I want 0% in cash. I don't like the valuations on the companies I am interested in as they seem fair or overvalued. I aim to buy at discount. So until there is a broad market correction, or one of the 20 companies I would add to or initiate a position in have a drop in price, I reluctantly wait on the side lines.


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## gibor365 (Apr 1, 2011)

I have about 40% in CASH on all my GIC and Saving account and I never going below 30% CASH. Stock market is simple gambling and I don't want to gamble all money I have...
It's fun when ppl talking that TSX is overvalued, it passed almast half yeer and TSX gain is about .... 1.5% ! less than GIC and less than inflation.


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## Karen (Jul 24, 2010)

It's an easy question for me to answer - 100% of my investments are in GICs. I know that horrifies many people on this forum, but it has worked for me. I became partiiculary risk averse during my first marriage because my ex-husband was so extremely irresponsible about money that I went to the other extreme. Since I was divorced at age 40, I became serious about preparing for retirement on my own and started putting the maximum amount allowed in an RRSP, and saving as much as possible in unregistered GICs. As it happend, I married twice more after that (I was widowed both times) to men who had similar attitudes to mine and, in fact, were happy to let me handle the money. I don't doubt that I might have done better if I had been more aggressive with some of my investments when I was younger, but I have no regrets. I have more than enough money to last my lifetime, and I never give a thought to the state of the markets or the rate of inflation.


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## marina628 (Dec 14, 2010)

I have about 25% in GIC and Cash ,about a year ago I had 41% in cash been slowly buying more Stocks .


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## daddybigbucks (Jan 30, 2011)

I am 10% in my stock protfolio right now.
I was about 20% a few weeks ago.

I will probably hold at 10% till the next bull market then try to get up to 20 again.


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## gibor365 (Apr 1, 2011)

daddybigbucks said:


> I am 10% in my stock protfolio right now.
> I was about 20% a few weeks ago.
> 
> I will probably hold at 10% till the next bull market then try to get up to 20 again.


Just cuoriuos how you gonna know when next bull market starts  Many analysts tell us that we are now in the bulish market


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## daddybigbucks (Jan 30, 2011)

gibor said:


> Just cuoriuos how you gonna know when next bull market starts  Many analysts tell us that we are now in the bulish market


when the tsx hits 14200, ill probably start unloading the heavy gainers.


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## kcowan (Jul 1, 2010)

I have 2 years living expenses in cash. Normally. I keep 1 year but I have been holding extra cash waiting for a buying opportunity.


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## larry81 (Nov 22, 2010)

I currently have about 65% in cash/money market.

My plan is the DCA over the next 12-18months but as more cash become available, the amount to DCA each month grow larger


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## gibor365 (Apr 1, 2011)

daddybigbucks said:


> when the tsx hits 14200, ill probably start unloading the heavy gainers.


Sorry, did get you. Do you mean when the tsx hits 14200, and that you're waiting to bulish market?


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## Financial Cents (Jul 22, 2010)

I like to keep about $10,000 in cash, but unfortunately I have less than that now. For the most part, I don't like holding cash except for an emergency fund. 

Like a previous commenter wrote, I don't like to hold cash because my investments are purely for the long-term and I don't think cash is a good holding long-term, it loses out to inflation rather quickly actually.


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## Belguy (May 24, 2010)

As per usual, my cash position is negligible. My target asset allocation is 60 percent equities and 40 percent fixed income and I recently sold some of my precious metals and emerging markets positions and put that money in the PH&N Bond Fund D. My situation is that I am currently retired. I have always been virtually fully invested through all of the ups and downs of the markets because I have learned from experience that trying to time the markets is a mug's game. I held on to my target allocation even during the equity crash of 2008 because I have also learned that what goes down goes back up. All that you need to do is to stay fully invested and adhere to your target asset allocation by rebalancing periodically as needed. Anyway, that is the crux of what I have learned during a lifetime of investing--that and not trying to hit home runs by chasing after hot stocks and hot sectors. Slow and steady wins the race. The best investment book ever written is the children's book 'The Tortoise and the Hare'. Be a patient investor and hold a broadly diversified portfolio with core holdings of low fee index products. Thank you for making the trek up the mountain to hear the sage advice of an old man who has experienced all that the markets have to throw at you. Buy, hold, rebalance, and prosper.


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## Ben (Apr 3, 2009)

30% cash right now. Emergency fund plus a growing pile of cash for the next vehicle. As years go by and assets accumulate, I intend to keep some cash on the sidelines expressly to be invested in clear buying opportunities to complement/supplement a long term buy and hold strategy.


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## Potato (Apr 3, 2009)

I'm actually a little negative cash right now (levered about 1%). Had some life expenses (including conference expenses that won't be reimbursed until July). Trying to decide between just carrying it until then, or selling something to get back to single-digit % positive cash. I'll probably sell something.




Karen said:


> It's an easy question for me to answer - 100% of my investments are in GICs. [...] saving as much as possible in unregistered GICs. [...] I have more than enough money to last my lifetime



Karen, what was your savings rate (%) to make that happen with just GICs?


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## Karen (Jul 24, 2010)

I can't really answer that question, Potato, because I've been accumulating GICs, both registered and non-registered, over a period of close to 30 years. What really helped, of course, is that the rates were considerably higher over many of those years. I remember getting either 15% or 16% one year - I don't remember which. I also remember feeling quite sick a few years ago when rates were dropping drastically and I had to accept 6% - now I'd think I was in heaven if I could get that! But with the balances I now have (about $700,000 in total, including my RRSP), my bank gives me an excellent bonus, and I'm comfortable with my decision. I know I'm not going to need this money anytime soon - probably never - so I always renew for 5 years and get the maximum rate (3.4% with my bonus last time I renewed one in April).

I know I might have done better if I had invested in the stock market, but maybe not - I have such an aversion to risk that I would likely have panicked and sold everything in 2008, even though my common sense would have told me not to. So I have no regrets - for me, this was the right thing to do.


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## Freedom45 (Jan 29, 2011)

As of Friday's close, I'm at 13.17% cash in my trading account. My goal is to hold 0%. Just so happens that I sold a few holdings last week, and haven't deployed the cash yet. 

Of the 8 of the 13% currently in cash will be getting deployed as soon as an ETF I hold comes down a bit more in price. I've got a GTC buy in place, and can wait a few months if need be... The other 5% will get put into an individual equity that will be held long term. Still deciding what that's going to be...


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## ddkay (Nov 20, 2010)

Not comfortable with the foggy markets right now & unfortunately believe there's more downside left going into summer (hope I'm wrong), so I'm taking a cautious approach but still liquid, so when eco fundamentals improve I can ride the next rally - 97% cash parked in ATL5000, less than 1% in call options (BMC 60 Aug '11), less than 3% in physical PMs.

USD and treasury prices seem very likely to rise (while t-yields fall) during a correction (following UUP since beginning of May)..


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## Jon_Snow (May 20, 2009)

My cash allocation is sitting at about 7 years of living expenses...

Doesn't bother me too much, with the markets going the way they are, a juicy buying opportunity might just be around the corner.... still bummed I missed out the March 2009 lows. I won't let a chance like that slip by away again.


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## KaeJS (Sep 28, 2010)

Karen said:


> But with the balances I now have (about* $700,000 *in total, including my RRSP), my bank gives me an excellent bonus, and I'm comfortable with my decision. I know I'm not going to need this money anytime soon - probably never - so I always renew for 5 years and get the maximum rate *(3.4%* with my *bonus* last time I renewed one in April).
> 
> *I know I might have done better if I had invested in the stock market, but maybe not* .


There are times when you can just be content making what you're making.

Karen, if I had what you had, I don't know if I would even bother with the stock market either -- and I am not afraid of risk.


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## daddybigbucks (Jan 30, 2011)

Belguy said:


> As per usual, my cash position is negligible. My target asset allocation is 60 percent equities and 40 percent fixed income and I recently sold some of my precious metals and emerging markets positions and put that money in the PH&N Bond Fund D. My situation is that I am currently retired. I have always been virtually fully invested through all of the ups and downs of the markets because I have learned from experience that trying to time the markets is a mug's game. I held on to my target allocation even during the equity crash of 2008 because I have also learned that what goes down goes back up. All that you need to do is to stay fully invested and adhere to your target asset allocation by rebalancing periodically as needed. Anyway, that is the crux of what I have learned during a lifetime of investing--that and not trying to hit home runs by chasing after hot stocks and hot sectors. Slow and steady wins the race. The best investment book ever written is the children's book 'The Tortoise and the Hare'. Be a patient investor and hold a broadly diversified portfolio with core holdings of low fee index products. Thank you for making the trek up the mountain to hear the sage advice of an old man who has experienced all that the markets have to throw at you. Buy, hold, rebalance, and prosper.


Great Post.

I am slowly but surely realizing this against my best attempts to prove otherwise.

I always do the right thing (after i exhaust every other option)


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## warp (Sep 4, 2010)

My Simple Answer : TOO MUCH !

With rates so low, and bonds maturing / being redeemed early, many people , like myself, are finding themselves with too much cash.

Normally this is not a big problem, but these days cash earns very little, and certainly less than inflation and so its a losing proposition.

Buying bonds or bond funds seems risky in rates start to rise.
Finding value in equities is getting harder all the time, as there is more and more cash forced to be put to work.

So I personally try to find reasonable, ( not great) prices on soliid dividend paying stocks......the inherent problem is that this throws the fixed income asset allocation percentage you might want into disarray.

KAREN:

You say you have a long term time horizon.
Staying all in GIC's may cost you , long term.
Perhaps you should consider some portion of your money into dividend stocks, or better yet a good dividend ETF, in Canada , US, and international. Just don't fret at every move, up or down...just hold on, and you'll probably do fine .
Just a suggestion...you gotta do what allows you to sleep at night


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## Karen (Jul 24, 2010)

I completely understand what you're saying, Warp, and I know it's good advice from a strictly financial point of view. If I had taken an interest in investing when I was younger, I'm sure I would have done things differently. But in my circumstances now (I'm 68 years old, have a very adequate monthly income from my own public service pension and survivor benefits from two husbands), I'm not at all worried about the future and I don't want to add any stress to my life. I have some serious heart problems (I've had two open-heart surgeries; the last one implanted two mechanical valves and a pacemaker in my heart) and my cardiologist told me years ago (at my insistence) that I don't have a normal life expectancy. Although I shall do my best to prove him wrong, I don't expect to have to make my money last till I'm 100! So if my daughters inherit less than they might have if I had been more agressive, I'm sure they won't complain!

Thanks for your thoughts, though. I plan to have a conversation in the near future with my daughters and my son-in-law about my estate, and the kind of information I'm learning on this forum will be very helpful in that regard.


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## iherald (Apr 18, 2009)

my stock accounts have 0% cash. each two weeks money goes in from my pay. I'm 32, so I'm just dollar averaging ETFs as I get paid.


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## davext (Apr 11, 2010)

10 to 20% cash all the time


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## warp (Sep 4, 2010)

Karen said:


> I completely understand what you're saying, Warp, and I know it's good advice from a strictly financial point of view. If I had taken an interest in investing when I was younger, I'm sure I would have done things differently. But in my circumstances now (I'm 68 years old, have a very adequate monthly income from my own public service pension and survivor benefits from two husbands), I'm not at all worried about the future and I don't want to add any stress to my life. I have some serious heart problems (I've had two open-heart surgeries; the last one implanted two mechanical valves and a pacemaker in my heart) and my cardiologist told me years ago (at my insistence) that I don't have a normal life expectancy. Although I shall do my best to prove him wrong, I don't expect to have to make my money last till I'm 100! So if my daughters inherit less than they might have if I had been more agressive, I'm sure they won't complain!
> 
> Thanks for your thoughts, though. I plan to have a conversation in the near future with my daughters and my son-in-law about my estate, and the kind of information I'm learning on this forum will be very helpful in that regard.


KAREN:

I can completely understand , now that you have told us your age and circumstances.

Just a thought...if you dont need the money / income perhaps it would be a nice getsure if you invest the money in your daughters names. I'm assuming they have been good children.
Giving cash gifts while you are alive can be more satisfying than after you are gone.
You should always do these things with taxes in mind. While you can "gift" as much as you want to your children tax free, they will pay taxes afterward on income from your gift.

This is what I intend to do.

Most of all make sure YOU feel comfortable with any decision you make.

Good luck.


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## Karen (Jul 24, 2010)

Funny you should suggest that now, Warp - I just gave paid off a large debt for one of my daughters and gave the other and her husband the same amount to make the 10% extra they are allowed to make on their mortgage. I've been giving a lot of thought to what I would like to do for them over the next few years.

And you're right - they're wonderful daughters, and I feel so good that I am able to help them.


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## warp (Sep 4, 2010)

Karen:

I dont know if you have grandchildren, but if you do, you can also open accounts for them and purchase shares on their behalf.

Any dividend income would have to be claimed by you until they are 18...but any capital gains would be claimed by them = less or zero tax.

Maybe buy some BRK.B ( Berkshire Hathaway B shares..think Warren Buffet),
and stipulate the shares can't be sold for some period of time, say 20 years.
Berkshire pays no dividends, so there is no tax problem and may be a great investment over 20 years .

good luck


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## Ziggy (May 16, 2011)

My investment portfolio is currently at 3% cash, 37% bonds, 60% equity.


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## webber22 (Mar 6, 2011)

Currently at 32% cash, 35% bonds, 33% equity.


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## Karen (Jul 24, 2010)

Thank you for your interest and caring advice, Warp. Right now three of my five grandchildren are young adults (18, 20, and 22) and I've been helping with their further education expenses. One of my granddaughters took a very expensive ($38,000) luthier (guitar makers) course, which I paid for. She's now doing an apprenticeship with a very well-known luthier in Vancouver and loves her life! It is so good to be in a position where I can help with things like this.


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## avrex (Nov 14, 2010)

I'm currently at *25% *cash (with a range of 20-30% over the last month).

Even though I've lost a ton of money in equities over the last couple of weeks, the loss has been partially mitigated by the fact that I had converted about half of my cash to Swiss francs (CHF) over the last three weeks.

I'll be going shopping for some cheap equities shortly.


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## J3ff (Mar 20, 2011)

*Lots!*

I'm at 70% cash and looking to purchase some nice dividend paying companies shortly after S&P downgrades France


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## KaeJS (Sep 28, 2010)

Currently 45% cash, 30% gold, 25% equities


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## daddybigbucks (Jan 30, 2011)

3% cash

Come on Fall-time Bull market


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## stephenheath (Apr 3, 2009)

daddybigbucks said:


> 3% cash
> 
> Come on Fall-time Bull market


I was beginning to get a complex thinking I was the only one... bought all my dividend payers real cheap in the 2008 crash, then spent my accumulated dividend money the last few days picking up a bit more, so I'm down to 1% cash at this point too. Although I have a 25+ year time horizon so I'm not too worried personally.


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## Oldroe (Sep 18, 2009)

I was around around 23% cash until 3 days ago. Expect to be rolling quarters by Jan.

Yes I'm timing the market.


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## the-royal-mail (Dec 11, 2009)

I'm well over 50% in cash, based upon my own risk tolerance. It used to be less but when I see what equities have done to my TFSA, I think I was better off collecting 1.25% interest. TFSA now down 6%, all due to messing with investments and equities in that account. That's what I got for trying to balance my portfolio.


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## Four Pillars (Apr 5, 2009)

I have 12% cash which should be invested in equities according to my planned asset allocation. This is a lot less than it was a couple of weeks ago, but I plan to keep buying on dips.

And yes, I know that is market timing.


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## andrewf (Mar 1, 2010)

Stop swearing, FP. M***** T***** is not a phrase to be used in polite company.


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## HaroldCrump (Jun 10, 2009)

MT has become such a cliche that it is meaningless now.
Every trade is MT.

If you were ready to sell today and your crystall ball said the stock will be up tomorrow, would you sell? If not, you are doing MT.
If, instead, you buy more, you are MT.

Even buying GICs is MT because you are betting on interest rates.


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## larry81 (Nov 22, 2010)

About 60%

Cash is coming faster than i can deploy it ...


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## martinv (Apr 30, 2009)

Cash approximately 3%

Equities 97%

Bonds 0%

Gold 0%

I assume these numbers are strictly limited to "investment accounts" .
For most of us there are other asset classes such as real estate, cash in other accounts etc.


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## arie (Mar 13, 2011)

interesting article in Globe today quoting Prem Watsa of Fairfax -- apparently he's in bonds and hedged 85% of his equity exposure 

i am not sure we should not be big time in cash ; he does not think the market will go up


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## Abha (Jun 26, 2011)

arie said:


> interesting article in Globe today quoting Prem Watsa of Fairfax -- apparently he's in bonds and hedged 85% of his equity exposure
> 
> i am not sure we should not be big time in cash ; he does not think the market will go up


Who says he knows more than the next guy.

For every bull, you'll find a bear. It's the equilibrium of the markets. 

If you want a counterpart, Warren Buffet is bullish, especially on the American economy.


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## Jungle (Feb 17, 2010)

$0 cash. 98% equity. 2% fixed income. (not including real estate)


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## HaroldCrump (Jun 10, 2009)

Abha said:


> Who says he knows more than the next guy.


His returns do, apparently 
Keep in mind that this is one of the very few guys that profitted hugely from the RE derivaties meltdown in the US back in 2007 - 2009.
I'm not saying we should do what he is doing (we can't), but neither is he your run-of-the-mill, fly-by-night, hedge fund manager.


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## bobwatford123 (Aug 9, 2011)

80% cash 20% equities.....was 98% cash 2 weeks ago


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## fatcat (Nov 11, 2009)

63.39%


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## humble_pie (Jun 7, 2009)

prem watsa & buffett don't agree ? that's unusual, they are friends. In fact, it's my theory that it was watsa who taught buffett how to structure those convertible preferred GE & goldman sachs deals in late 2008. Watsa was doing distressed financing quite some time before buffett.

the CFO of ING bank in late 2008, when the dutch government loaned ING 13 billion USD in an identical structured deal, was a canadian who had been a toronto actuary. Presumably he, too, learned at the fairfax founder's knee. One might fairly say that prem watsa's ingenious financing strategies for highly stressed situations are now copied all over the world.


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## Freedom45 (Jan 29, 2011)

~1% Cash currently. Target up until this point has been 0% (90% Equities, 10% fixed income).

Going forward, I'll be aiming to carry around 5% cash in my portfolio (85% equities, 10% fixed income, 5% cash), so that when great buying opportunities present themselves, and I can DCA down, I have the cash to do so...


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## arie (Mar 13, 2011)

yes that is why i quoted Prem Watsa; what he does in his investing has been dead on the money 

he's now very cautious about equities and apparently does not believe this is a short term situation; the fact there is too much debt to be worked out of the system according to his assessment will require time ; i"ve read it by a number of economists that we are in for a long slow period of growth ???? 
a lot of his money is in bonds ??? go figure


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