Before we start, thank you to the dozens of new subscribers over the past fortnight. I can’t believe that 900+ of you took the time to read my last newsletter. I really do appreciate all feedback or questions either here in the comments or via email. Now let’s get to 1,000 subscribers 🤓🩷
“Revenue is vanity, profit is sanity, but cash is king.” - Unknown
The question I get most in my DMs are requests for cash. It’s rarely framed as directly as that, however. It could be a founder looking for seed capital, a property developer requiring equity or debt and occasionally someone desperate offering me 20% per annum return. If the messenger is not not asking for cash, they’re asking for advice on where to get it.
Holding cash isn’t sexy. It doesn’t sell courses. People don’t offer mentorships on how to grow your cash investments. But on the flip side cash is key to every other investment. Without readily available cash you don’t have options. You don’t have freedom.
During ZIRP (the zero interest rate period) I feared holding cash believing that inflation would erode it to nothing. It wasn’t until my hair went grey with the stress of nearly losing everything that it finally dawned on me that cash really is king. It’s more than sanity, it’s peace of mind, security, the bliss of sleep. Cash also gives you the freedom of choice. Nothing feels as good. It’s one of the pillars of a solid portfolio and one that gives far more than just the monetary return.
One positive of interest rates increasing* is the plethora of banks offering around 5% per annum returns. While it might not seem much, an £18,000 deposit earns approximately £2.50 a day. And then there’s the sprinkle of magic dust that comes in the form of compounding interest. Just tap a few numbers into a compound interest calculator and see how little and often grows into a lot over the longer term.
Now inflation is dropping to near Bank of England target levels even our cash is rising above inflation. It’s a good time to be a cash investor.
*Yes I get that mortgage rates have gone up and this is causing people pain. I still think there could be more to come as there’s still a disconnect between housing prices, interest rates and affordability. But that’s a topic for another newsletter.
The information given does not constitute legal, tax, or investment advice. You must not rely on the content of this article when making any investment decisions.
🎧 Speaking on inflation, I had Simon Popple on my podcast this week talking about the inflation hedging properties of investing in gold. When Simon, a former property investment manager, approached me about being on my podcast I was intrigued about the case he would make for investing in gold when it was at an all time high. There are always the sensationalist reasons put forward for holding physical gold and silver and Simon did touch on those. But he has other reasons too, the main one being a hedge against inflation.
I held physical gold years ago but sold it in 2014 or so to invest in a property development. My view is that I’ve got enough exposure via my equity investment portfolio and the listed companies involved in commodities. But that’s my view. What do you think about gold investment? Agree with Simon? Are you worried about inflation enough to buy gold?
🎧 Two great podcasts I’ve listened to this week both come from the kiwi duo, Victoria and Sophie of The Curve. These two are properly hilarious and I’m looking forward to working with them more closely soon (watch this space). Take a listen to the episodes with Linda Jenkinson and Ana Kresina. They really stood out.
Linda was the first woman CEO to list on the NASDAQ in the late 1990s. She’s essentially gamified her life achievements. Especially when competing against her father.
Ana is a Canadian living in Australia who has a thoughtful approach to all she does. I thoroughly enjoyed her insight into money mindset and the cost of raising children. Not that I need any reminder of that given I have three, two of whom are in private education 😬💸
📚 I’m still consuming The Seven Sisters epic series I discussed last newsletter. I’m up to book 6 of 8 and I’m sure it’s contributing to my recent insomnia but I can’t put them down…
Another book I’m reading is Michael Becker’s Content Capitalists: How to Create a Content Business So Exclusive Customers Beg to Buy It’s not out yet but Michael sent me an advance copy ahead of our interview which will be out in the next couple of week to tie in with the book launch. Subscribe so you don’t miss an episode.
Content Capitalist is the playbook on marketing right now. Michael goes into so much detail in what he calls his final ode to marketing as he leaves the industry and enters the next phase of his career, start up investing. My printed copy has pink post-it notes all over it.
📚 Given the topics of today’s newsletter the next instalment of my book, Bricked It: How [NOT] to lose millions in property, is rather on topic. Thanks for all the feedback so far. I appreciate it all. Remember the book is still in draft mode as the editors work through it so ignore obvious typos and grammar slip ups. But here we go, chapter one…
Keep reading with a 7-day free trial
Subscribe to Health, Wealth & Wisdom with Nicole Bremner to keep reading this post and get 7 days of free access to the full post archives.