 Good day fellow investors! I recently mentioned that I'm 90% in cash when looking at my stock market allocation in my life. Plus I'm even will be selling my real estate and that might look like I'm a market timer but I'm not. I'm a value investor and I want to explain in this video why am I so much in cash because that's how it happened. It's not that I'm trying to time the market. I have special criteria that allows me to buy or not which is separated from what the market does. When an investment meets my criteria I don't care about the market. I want to explain that today. I have two portfolios which make all of my stock market holdings. One is called the 100,000 portfolio, a lump sum one because I invested 100,000 in it and the other is the 10k small portfolio with monthly additions that I launched in May 2018. So the lump sum portfolio I publicly launched two days ago and you can all follow it if you wish and I really want to make everything public so that people can see what I do and for now I have only one position that makes 10% of the portfolio. That's it and the question is why don't I have more? Well when you're looking at my stock market portfolio my largest position in January 2018 was Navson Resources. That did thankfully very well and very fast. That developed very fast. I sold everything through 2018 balancing my risk. The last one the last part was at the offer from Zee in mining so that unlocked a lot of cash plus there has been some other cash that I had to pay taxes things like that, get back from taxes and now I have a lot of cash not because of my market timing because I am patient when I deploy that cash. I like to play with the Buffett punch card because it really gives me discipline, patience to find the best investments as we discussed in the Buffett patient video discussing his Coca-Cola story how he waited 50 years to buy the company. So applying the same patience I wait that as company really fits my investing criteria and only then I buy. The market the economy yes it affects my long-term earnings calculations what can happen what's the risk reward but it doesn't really affect my buying decisions. I just wait for the business and the business earnings to be at my buying point compared to the price earnings yield of at least 15% of a good business and then I buy no matter what will happen in the economy if then the stock market drops and the stock drops even more I'm just ready to buy more that's it. On the small market portfolio that is 10 000 from May and then I invested 8 000 every 1000 every month for the past eight months we are as of today Friday for January when I'm filming this we are at 18 341 so we are positive for the year but this is irrelevant in the short term. The point here is that I'm 40% in stocks and I'm constantly doing research to find great investments and here the risk tolerance is a little bit more because 8 000 and I plan to add the thousand dollars a month for the next 19.5 years so that's 246 34 000 over the next 20 years when I discount that at a 10% discount rate it comes around 120 as a total value of the portfolio so even less than 10% here but I allow here myself to have take a little bit more on risk because I don't need to be that certain about the stock because if I make a mistake it's not big in the big picture but if I do good it can do really well in the long term. So when will I go to 100 stocks that depends on what I find when I research or when some stocks hit certain price points that I consider have value have a good business yield have a good earnings yield and have a margin of safety in comparison to whatever is going on in the sector what's getting cheaper etc etc it might be that if there is a crash at the end of 2018 I'm 120% 2019 I'm 120% in stocks because I plan also to go on margin if there is so much cheapness in the market but it can also be that I buy maybe just one or two stocks over the next two three years that depends on the market I'll work on managing balancing that cash that I have and hedging but that's the plan for the long term and I just wanted to point out the thing that I'm not timing the market it's just a coincidence from a value perspective because few stocks meet my criteria and my criteria are the following so is this a business I can understand very well squarely within my circle of competence do I know the intrinsic value of the business today and with high degree of confidence how it's likely to change over the next few years is the business price at a large discount to its intrinsic value today and in two to three years over 30% would I be willing to invest a large part of my network into this business is the downside minimal does the business have a mode is it run by viable and honest managers does the business offer a 15% earnings yield over the long term is it a sector with positive tailwinds how does this compare to other possible investments in the sector what is my biggest concern and when everything is we answered with a yes and it compares good with the sector and my biggest concerns are manageable from a business perspective only then I invest and as soon as I find something that fits this you can be sure that my stock market exposure will increase no matter what the market does no matter what happens in the economy because when you buy great businesses then you can sleep well no matter what if you want to check everything that I do you can always check the stock market research platform I'm running with the link in the description below there is a 30-day money back guarantee so I always urge also investors just to check it to see my perspective perhaps it will help you in your life if the research the value added that I'm giving it's not really fitting your personal preferences thank you for watching and I'll see you in the next video