Page 33 - Waterfall City Issue 7 July 2024

CASH IS KING

How cash can help you capitalise on equity opportunities

By Wendy Myers, Head of Securities, PSG Wealth

Have you ever heard the expression ‘cash is king’? Well, cash isn’t always

king when considering investing in securities, but it certainly has a place.

Cash can be an effective tool when investing in securities, and investors

should be aware of the different types of cash solutions and how their

securities portfolios can benefit from having access to them.

A Once you have defined your financial
savvy investor understands
the critical role of cash
plan and are contributing cash towards
when investing, and a cash
your portfolio regularly (ideally
solution that offers timely
access to cash is essential. While monthly), you will need a ‘parking
space’ or short-term vehicle for this
you are invested in cash, you also cash to reside whilst you consider
want the comfort that your funds your next investment. Therefore,
earn returns to contribute to your a critical requirement of any share
portfolio’s investment performance. trading platform is a cash solution that
allows you to deposit and withdraw
Cash liquidity is crucial to seamlessly and provides you with
take advantage of equity immediate access to your cash when
opportunities when they stocks reach attractive entry or exit
arise levels.
Benjamin Graham, the father of value
investing, said, “The best way to How does this strategy help
measure your investing success is not investors grow their long-
by whether you’re beating the market term wealth? Wendy Myers, Head of Securities, PSG Wealth
but by whether you’ve put in place An overnight cash product is the
a financial plan and a behavioural most effective solution for short-
discipline that is likely to get you where term cash requirements. This kind of
you want to go.” product works well when you want

Waterfall City Issue 7 2024 31