I Hold 60% Cash


How’s it going everybody this is beat the bush today i’m gonna talk about the stock market just in general and right now i’m actually holding about 60% cash now roughly before the stock market crashed another 10% or so i was actually holding about 80% cash this is actually something i do not recommend everyone to do because i am in the process of timing the market

Well you’re not supposed to do it timing the market is probably a really bad idea for most people but i guess i am personally doing it because i guess maybe i have a huge ego or something and i think maybe i can beat the market and i’ve tried for many years and i would have to say my history is not good i have not been beating the market but then it’s been doing

Pretty well the last two years so then i think that maybe i have some sort of formula going on so i’m gonna try and try again until maybe i get it right so it’s kind of like you know kind of like a business right if you start up a business you’re not gonna be able to start a successful business the first time but as you trade more and more as you invest more and

More you start to learn about what you should and should not do so this is what i feel like i personally am doing by and large i think most people should be invested in a stock market index they just keep on buying into it just dollar-cost averaging and this is the same thing that warren buffett says so when you try to time the market you think oh it’s getting

Really high so you sell you get more cash position and then you try to time the market bottom you might not be able to get it very exact but then you try to put money into it hoping that you can you know increase your gains a lot more and do better than the smp 500 so there’s a lot of study about hedge fund managers this is basically professional traders they do

This day in day out right and after five years or so they fail to outperform the snp there was like ninety ninety five percent or something most hedge funds is not gonna beat it so when you go and try to time the market when you try to manage your own portfolio you’re essentially saying that oh i know better than these professional traders so this probably takes a

Little bit of ego you know thinking that you can beat someone in a game where they have more information so i would have to admit yeah you know i i’m trying i’ve been succeeding in the short-term so i don’t know if it’s gonna be able to do in the long term but you know it’s just almost something that i am not able to walk away with mainly because i want to figure

Out if i am able to do it if you kind of understand what i mean by this because if you just don’t try right you never know what you’re capable of and i think this is why so many people keeps on trying to time the market because you just have to try sometimes if you can be the type to try to ignore your instincts your urge to think that you can time the market and

Just kind of go buy words of wisdom of other people meaning you have to listen to the studies and stuff and then you just go by that which works for majority of the people then you can go and do this it’s kind of like when people tell you a strategy when let’s say someone much wiser than yourself your parents or something they say oh don’t do this because if you

Do this this and this is gonna happen but somehow you go and do it anyway knowing that okay possibly you might fail or something you might fail in the exact same way that your parents tell you you’re gonna fail but then you do it anyway because you want the experience or maybe you just can’t resist you gotta do it anyway so i equate it to something like that where

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It’s kind of like something you you have to find out on your own and kind of just try if you look at berkshire hathaway this is a very good blueprint i feel right you got warren buffett over there so he’s been doing something right because all these years he’s able to really really multiply his wealth over there so he has 191 billion dollars invested in the stock

Market over a portfolio whatever right and you guys know that he has about a hundred twenty eight billion in cash this is according to the last filing right so this is essentially 40 percent in cash now what are they gonna do with this forty percent when the market just there’s a a bath out there when it’s really really crazy i’m pretty sure in the next month or

Two they might deploy this money into something into some industry that is really hurting they’re like oh my gosh we’re gonna go bankrupt they do not have enough funds to do something right they’re essentially gonna fold soon and then this berkshire hathaway it’s gonna walk in there and then go yeah you know this company is pretty good they’re gonna bail them out

Right they’re gonna buy everything and then go okay they can buy it for like pennies on the dollar or i don’t know a dime on a dollar or something something really cheap for the entire company and all of sudden they wait a year or something the whole in company’s gonna recover and then all of a sudden they might make two hundred five hundred percent on whatever

Amount they invested so i bring this up because they hold a huge cash position and this is what i personally trying to do right now i held way too much cash before going into this downturn and i feel like you know right now it’s about what 15% down or so in a previous video i said it could go down as much as 30 to 50 percent so i’m still waiting around why do i think

It’s gonna go down because we have not seen the end of it yet the total fallout for this whole situation we have not seen the rate of people getting sick kind of shrink it just feels like it’s still accellerating so then it’s not the end of it it’s gonna get worse at some point they have to do some sort of restriction on people moving anywhere i think there’s still

About a month or two left before this is all gonna play out and this is the reason why i’m holding so much cash in my portfolio i’m getting ready to pounce on the market when it’s dirt cheap when people are running for the hills and stuff so last time when i saw the market like this i always can’t time it perfectly okay like sometimes people you guys think that i

Can time it perfectly when i sold it i sold it at 795 and then it went up to like up to nine hundred $20 so i’m i can’t predict it perfectly all i can do is you know if i make a good amount of money no matter if i get it right at the top or like little away from the top as long as i make a bunch of money then this is positive news right and it turns out right now

After some time after tesla it kind of went down a little bit due to you know this economic problem by the way i can’t say what it is right now i used to have a word for it right i think they censored this word so because of this issue that we have right now where we have to wear masks and stuff right tesla is down to $640 so it’s down about 20 percent from where

I sold it at so you know right now i’m feeling very good about myself whenever i make a video where i say oh i’m buying into a certain asset and then you know maybe a week later a month later the stock price goes down someone always goes in the comment section and then go haha look you’re wrong yeah you know the stock price is gonna go up and down i cannot always

Predict that when i buy something it’s always gonna go up the next day or the next week even it’s always more of something like when i personally buy something right i talked about buying into the energy etf i’m not even gonna say what that is you can look in my previous video but i bought into it it was i think twenty seven dollars okay and i’m like yeah you know

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If it goes to 26 it looks like that’s kind of like the bottom or something well look at now it’s $19 so it’s quite a bit below where i initially bought it the thing is i bought very little of it okay and then as i saw it go down more and more i kind of bought more and more into it so i’m kind of dollar cost averaging into this and my current average buy-in price

Right now is around $22 so as soon as we see some sort of little rebound right i’m going to kind of break even and then if it goes beyond that i’m gonna make money of course i did not predict that there’s going to be a price war between russia and saudi arabia or opec plus or whatever so this is news to me but it doesn’t really matter i’m like hey hooray it’s gonna

Go down i feel like this price war is not gonna last forever i may be a little bit depressed for maybe a week and we already see it rebound a little but so i see this as a temporary thing and this is a really good time to buy again i’m not saying that it’s not gonna go down anymore okay right now it’s their $19.20 or something like that it might just go down to

$17 $16 $15 for teen dollars okay if it goes down that much i might go oh my gosh but this sucks but it sucks but it’s not gonna affect my livelihood okay you have to know that all this investing money i consider investing money i actually have a separate cash stash to you know pay for my living expenses pay for my groceries pays for my pg&e bill my electric

Bill gas everything that i need okay i can essentially live on my cash without touching my investment for like many many years and long enough for maybe eight to be able to sleep very well and then go oh yeah you know i’m just gonna wait i can buy whatever asset price right now which i think it’s really low it’s like on sale right now but not at the bottom it’s

A it’s it’s a nice sale i’m kind of looking for something a lot more on sale i want 50% off you don’t want just 25% off right so if it turns out that way okay i’m not wishing for the economy to collapse or something but once in a while like every ten years this is gonna happen as an investor i’ve only seen this two times happening at the dot-com and also at the

Housing busts and both those times i did not have enough cash on me but this time is gonna be different i’m holding on in to significant amount of cash so that i can buy at the bottom when i think there’s blood on the streets when it’s just crazy out there and right now i don’t think it’s crazy it’s just kind of like oh yeah it’s kind of bad but it’s not really

Really bad so we want to wait for that situation where i think i actually think it’s gonna get really bad out there we’re not doing enough in the united states to curtail this from happening yeah they’re saying like oh 1,000 people cannot meet or something over here santa clara they’re restricting certain things but i don’t think this is enough there’s plenty

Of people out on the freeway they’re just traveling everywhere people are still walking outside when i went to the grocery store the other day there’s still a whole bunch of people and because of this they’re still gonna be transmission you know the people are gonna keep on getting it our rate of transmission is not gonna go down until something more drastic

Happens and i think as more and more people die not that i want more people die but i wish they would actually put these in restriction in now so that not more people will die but i feel like a lot of these government and entities they cannot act before they see blood on the streets before they see some fatalities then they go oh yeah now they have a reason to


They cannot preempt it for some reason i don’t know why these kind of opportunities only happen maybe seven eight times in my lifetime okay so this is the third time that’s gonna happen and i’m holding on to significant cash and my only worry is that i buy into it too quickly i’ve already went from 80% cash for sixty percent cash okay so i think i did it a little

Bit too fast so i’m i’m you know really trying hard not to buy into it because i’m like whoa it’s so cheap and at the same time you don’t want to wait until a certain target okay maybe you buy more heavily into it when it’s really really down but i missed last year’s dip because i was waiting for it to go down even more so it could just so happens that it dips smp

500 the stock market dips like 15 percent and this could be the bottom and then it rebounds from here or it could just keep on going so you never really know where is the bottom we could be hitting the bottom right now maybe they would turn around and then suddenly do all kinds of restrictions from people moving around and then all of a sudden we see a recovery and

No one’s see it coming so that is why it’s important to slowly go in so that if it happens to keep on going uh price if you know the next day suddenly the stock market goes up by six percent you can go oh yeah at least i some money into it so when it fully recovers then you can you know just not buy anymore into it i guess and still make a small profit versus if

You try to hold it on and if you have a target let’s say 50% okay you’re only gonna buy into it when the stock market is down by that much but let’s say it only goes to 45% and you’re just holding on tight then you’re not gonna get you know all this benefit when it was minus 40% so i really think you should kind of do it in a way where you say yeah i’m gonna be

Fully invested in the stock market when it’s minus 60% – 70 % and you’re gonna do in stages every 10% down it goes you buy another 12% you use 12% of your portfolio every 10% it goes down or whatnot so this is timing the market for you it’s not recommended for everyone maybe you guys also think that you can be professional traders or maybe you just want to try it

Out you don’t know you can’t beat them but you just want to see if you can beat them just like me personally perhaps when you watch this video you’re gonna get some insights on when i personally gonna do it hopefully i come out of this alive and that i don’t think the stock market is going away just yet just because of this virus i feel like it will recover and

You need to be prepared when you do buy into it it’s not gonna go up the next day you have to know that when you buy into it you might see it drop another 25 percent or even more and you’re gonna have to hold on to it feeling bad about it for like six months to a year or something or even two years before it fully recovers thanks for watching this video if don’t

Forget to give me a like comment down below let me know what you think of my views these are just my personal investing views me trying to time the market don’t do as i say over here i can’t recommend anyone to do this i can only do it myself right and as always push that subscribe button ring that bell icon thanks for watching

Transcribed from video
I Hold 60% Cash By BeatTheBush

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