Heehee I think it depends what you're actually measuring. Whether it's whole portfolio basis, or a portion of the portfolio.
Whole portfolio will include stocks, bonds, etf's, investment properties, investible cash(including war chest & standby funds). 😉
E.g. when measuring the investment performance of Buffett, we include his $100+B war chest, even though it definitely is a cash drag on Berkshire. Buffett will tell us he rather have this cash drag than to invest in over priced companies. 😄
Hi Uncle8888,
ReplyDeleteHeehee I think it depends what you're actually measuring. Whether it's whole portfolio basis, or a portion of the portfolio.
Whole portfolio will include stocks, bonds, etf's, investment properties, investible cash(including war chest & standby funds). 😉
E.g. when measuring the investment performance of Buffett, we include his $100+B war chest, even though it definitely is a cash drag on Berkshire. Buffett will tell us he rather have this cash drag than to invest in over priced companies. 😄
Cash still have low return and still better than negative return when over priced stocks corrected or crash.
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