💰 One of the most asked questions from new copiers is the huge cash balance in my portfolio. This comes from my recent 3300% profits from GameStop $GME . How will I spend this cash? We cannot stay in cash since cash is trash. Although technically, I could stay in cash for the next 5 years and still beat the market $SPX500 .
⛵If you've been following my work, you will know that I'm not going to buy a yacht or anything but will reinvest everything. It is important to consider that I have now over $700k of other people's money in cash. Since most of my net worth is on my eToro portfolio, I'm going to invest all this cash the same way I invest my own money. 100% skin in the game.
⌛ I'm not going to rush into an investment just for the sake of maintaining the same returns as in January 2021. I held GameStop for 17 months for these returns. This is a long-term game and this cash will be deployed as I find good investments.
🤝I always say that the best alternative to cash is arbitrage. Much of this cash is being invested in my arbitrage positions such as DouYu $DOYU or Genworth Financials. Another part of the cash is to buy stocks already in my portfolio which are still cheap, for example, Essent Group $ENST and Qudian $QD . I'm also doing some readjustments. For example, I had 10% of my portfolio in Polymetal since I wanted exposure to gold and silver. Now, it is only 4%, I can increase the position gradually since I'm still bullish on gold and silver long-term. However, I won’t buy more of companies which are expensive such as Apple $AAPL . It is only 1% of my portfolio from 2016.
💰I'll keep some of the cash as I find the next big investment. Hopefully, the market will crash and we will have stocks which are much cheaper to buy. Even if cash is trash, over the short-term it is not really a problem. This is only temporary.
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