Comments on: Why You Should Hold Some Cash in Your Portfolio

By: Jason Lowen

Jason Lowen — Fri, 10 Apr 2009 03:28:14 +0000

I agree with this approach entirely. I also keep 2-5% of my portfolio in gold and perform real due diligence, including reading the SEC reports before I invest. My website started discussing PLDT (NYSE: PHI) (PSE: TEL) on April 10, 2008 and I have had to learn GAAP and how easy it is to manipulate the market by developing countries, whom appear transparent.

By: ABCs of Investing

ABCs of Investing — Mon, 06 Apr 2009 03:14:08 +0000

[...] The Dividend Guy Blog suggest you should hold some cash in your investment portfolio. [...]

By: Recommended Reading - April 3, 2009 | Old School Value

Recommended Reading - April 3, 2009 | Old School Value — Fri, 03 Apr 2009 07:13:53 +0000

[...] Why You Should Hold Some Cash in Your Portfolio by The Dividend Guy [...]

By: Money Matters Site: Financial Resource For Credit Card Management and More

Money Matters Site: Financial Resource For Credit Card Management and More — Thu, 02 Apr 2009 02:26:29 +0000

[...] Dividend Guy Blog: Why You Should Hold Some Cash in Your Portfolio [...]

By: Brendan

Brendan — Wed, 01 Apr 2009 18:19:12 +0000

Like you, I wish I had more cash to spend. Having said that, I always like to stay fully invested at all times. When I buy a stock I have already bought it at what I believe to be a good value. While buying at an even lower price would be better, how low is low gonna be?
I think Buffet said something like ” if you keep waiting for the robins, you might miss spring”.
My available cash is simply whatever dividends have accumulated in my account, plus whatever contributions I have made during the year.
Once enough cash has piled up, I look for something to buy. If there is something I want at a price I want, then I buy. If not, the c ash sits there until I can put it to good use.
I spent my last bit of cash to buy Coke at a 4.4% dividend yield. With a recent dividend increase, and a good chance it will continue to grow well into the future, I cant complain.
If I pay 75 dollars for a 100 dollar box of steaks, and then a month later someone else buys the same box for 50 dollars…….oh well.
While 50 dollars is a much better buy, I really cant complain at my price.
I should also mention that any stock I buy will start falling in price, and anytime I sell a stock it will begin to climb!
This happens to me 100% of the time, and my track record of prices moving against me are better than anyone alive on the planet, so really I dont worry about it.
So long as my dividends increase, and my yield on cost goes up, then I am happy.
With dividend growth, as the income goes up, so will the price of the stock eventually.
Thats what makes dividend growth investing such a beautiful thing.