Insurance
UOB, Prudential and what is financially manageable?
By A Singaporean Stockmarket Investor (ASSI)  •  October 5, 2015
As investors, we recognise that we could make investment mistakes. So, it is important to size our positions appropriately so that if an investment turned out to be a mistake, it would not sink our entire portfolio. It is partly about making losses financially manageable. So, what is financially manageable? Well, a more prudent way of interpreting whether something is financially manageable is in terms of cash flow. I know we could also interpret whether something is financially manageable by how much we have in savings. Well, it is nice to have more assets (and cash is an asset) than liabilities but if we should be in a situation that requires us to draw upon our assets to fund commitments, then, we could find ourselves in trouble in future. So, before we commit to anything financial, ask if our cash flow is adequate and not just whether we have enough ......
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By A Singaporean Stockmarket Investor (ASSI)
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