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Hello Crazy Gang,
I used to have all my wampum in shares. Every last bit of it. But after a few shocks lately, I've changed my policy a bit.
I now keep enough cold cash in the bank to see me through any troubled times. I hate to sell anything cheap, and if I need cash it used to mean selling shares.
Don't get me wrong, chums. I'm quite happy to sell my stocks. I do it all the time. But I no longer want to be in a position of selling shares when the time might not be right.
For example, if all shares fall as the result of a terrorist attack, I know that the Footsie will right itself soon enough. (I'm always a bit irritated that terrorist activity should affect shares at all, but we have to be realistic - the big dealers can panic).
I don't want to be forced to sell shares under an appalling cloud like that. So nowadays, I keep enough cash handy in the bank to see me through, so I don't have to deal at the wrong time.
Another precaution I take nowadays is to buy into a lot more companies than I used to. I've always had a wide spread of firms, but it's even more extensive these days.
And another thing. I always had a rule that I should never put more than 10% of my money into one company. But I've recently changed that target to just 5%. You can't be too careful these days. The markets are more exciting because they are more volatile, but the risk is greater - and I hate too much risk.
And now... let's all rock on!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
For more information about UKSA CLICK HERE
