Thursday, December 07, 2006

Net Worth Update for November

Out of curiosity, I went back and cleaned up my networth spreadsheet for the last few years. I'm including the most recent 6 months below. Performance has been outstanding, to the point that I lost what little sense of urgency I had in interviewing financial advisors. I will get back to interviewing in the next few weeks.

The main (only?) move I've been making is further diversifying out of my company stock. Of course, every single sale of company stock has thus far been a big mistake, but maybe one day I will appreciate the discipline.

From anecdotal evidence, I believe that there are many others with high cash positions waiting for a market correction to put money to work. After a strong months-long rally in the stock market, there seems to be a lot of bearish sentiment out there. I just don't see a substantial correction happening, there are too many people like me waiting for a correction to invest their cash horde. My cash position is even higher than shown, because I didn’t bother to break out the substantial cash holdings in my brokerage and bond accounts. The cash level in these accounts has increased considerably due to some profit-taking I did this week and also due to the maturing of bonds over time.

Window into the assets of the rich

Interested in how rich people allocate their assets? Just check out the 2005 detailed personal financial disclosures of the richest Congressmen:

Also, it's interesting to compare these disclosures against earlier years. Many Congressmen have doubled or tripled their net worth in the last 3 years thanks to booming stock markets and the real estate "bubble".

The largest sector where assets were held is in investment real estate.