tag:blogger.com,1999:blog-1602023866179666640.post2988798420348223403..comments2024-03-22T00:30:54.666+08:00Comments on Create Wealth Through Long-Term Investing and Short-Term Trading: The best investors sit on plenty of cashCreatewealth8888http://www.blogger.com/profile/08563834016250153049noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1602023866179666640.post-69924500811384361482017-09-17T20:37:11.277+08:002017-09-17T20:37:11.277+08:00Retail investors have an advantage over profession...Retail investors have an advantage over professional investors --- we don't have to play if we don't want to ... There's no need to keep dancing even if the music keeps playing & hot ladies are all over you to drag you onto the dance floor! Hohoho!!!<br /><br />Pros need to constantly be "doing things" ... for their livelihoods depends upon it ... even it is merely "zhui kong" action & some cut-and-paste charts to convince hungry bei kambings to attend the latest & greatest Sure Win master guru course...<br /><br />I know a portfolio manager acquaintance & she basically said the max limit for cash is 10% even when all assets are priced at 100X PE (various mandates may have different levels of max cash levels, but usually not more than 10%-15% unless it's hedge fund or private equity).<br /><br />The concern for people like her in the industry is looking different from peers. In an expensive bull market, your performance will suffer vis-à-vis competitors if you up your cash positions ... and customers start moving elsewhere. AUM is the raison d'etre for their $2++M a year salaries. They themselves may be sitting in cash up to their eyeballs, but they will continue to sell "investing" to customers!! Kekekeke!!!Spurhttps://www.blogger.com/profile/11824813457786462446noreply@blogger.com