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Ratbag

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About Ratbag

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  1. Agree overall with the assertion that 'time in the market > timing the market', but there is a case for having some cash available for 'special situations'. From my own experience, I tied too much cash up in capita [CPI]. The subsequent caning means that I am happy to keep it as a LTBH, but it did mean that I couldn't put more money into AA after the share price was nobbled by the antics of the CEO who was kicked out. I don't see the fundamentals of AA's business changing as much as the share price fell, and would have liked to top up more. Similarly, I had kept some 'special situations' cash on hand which I used to buy our hosts, IGG, after the share price plummeted last December. What a good move that turned out to be. A 30 % improvement in SP at the start of say a 10 year hold certainly helps bump up the return. So I suppose the argument is similar to that posed by the rise of passive funds - Do you just put all your money as soon as possible into a tracker and let the inexorable long-term rise of the market guarantee your return, or do you want to be a bit more 'on-the-edge', and try to find an extra tweak here and there? Ho-hum. In the end though, the former position is the safest. Ratbag
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