During an investment discussion, one of my acquaintances had asked an interesting question, which is:
“You have been updating about which counter you had bought into, and you seldom sell any. Where did you get the capital from?”
Picture generated by Meta AI
Here are the capital sources:
Capital Source #1: Cash Injections
If you had read the makeup of The Bedokian Portfolio, there is a small portion (earmarked 5% for our case) dedicated to cash. This amount is purely used for investing, and it is not mingled with our normal savings and emergency funds. This is the major capital source especially for our portfolio build with disposal income.
So, what are the tributaries contributing to this cash portion? On a regular basis there are two: from the portfolio itself (dividends from equities, distributions from real estate investment trusts, coupons from bonds and interest from cash in banks) and monthly contributions from our...