Seventy Two Percent Invested, Twenty Eight Percent Cash

Cash on hand increased to twenty eight percentage this month as I received my December salary and Annual Wage Supplement.  The AWS is also called the “13th month payment”. If you didn’t know, according to Ministry of Manpower website,

  1. Annual Wage Supplement is not compulsary
  2. Your employer can negotiate a lower amount of Annual Wage Supplement if business results are exceptionally poor for the year.

Cash is like an option over every asset class, with no expiration date and no strike price. Cash provides the option to sweep up a bargain when it becomes available and this must have some value above the fact it earns almost nothing.

My cash balance is after paying off one year of my child’s school fees, one year HDB car park fees and topping up my supplementary retirement account.

There are a few stocks that I am currently watching as the prices has gone down recently. They are ST Engineering and Silverlake Axis. I like ST Engineering for its stable dividend payout every year. The dividend yield is 4.7% to 4.8% . Having done my homework recently, there are no recent bad news for ST Engineering and I will top up should ST Engineering stock price continues the downtrend.

For Silverlake Axis, I have been watching this stock for a few months. The stock price has gone down slightly this week to around S$0.57 lowest. Silverlake Axis business is in the core banking software. As core banking software is difficult to replace, the moat of this company will be its long term recurring maintenance revenue from its customers that uses its software. As this company is extremely complex to analyse and historically, it has also been accused of insider trades which turn out to be false claims. However, these false claims does have an impact on its share price. I shall be monitoring Silverlake Axis closely next week and see if there pose an opportunity. I hope the share price goes down further for more margin of safety.

Tomorrow is the Eve of Christmas and I take this opportunity to wish fellow financial bloggers and readers a Merry Christmas!

2 thoughts to “Seventy Two Percent Invested, Twenty Eight Percent Cash”

  1. “Cash is like an option over every asset class, with no expiration date”.

    Only in the short term…….

    Inflation will eventually erode its value to zero.

    Government “black swan” action, such as in India, will reduce it instantaneously to zero by declaring the bank notes worthless.

    As Buffet says, “cash is a dreaful place to hold your wealth”, by which I presume he meant long term.

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