Rajeev Thakkar on PPFAS cash holdings.
"A question is frequently asked of us as to why we sometimes hold cash. To give a cricket
analogy, we are playing test cricket and not a T20 game. Not losing our wickets is more
important than hitting a six. We will wait for a loose ball to try and hit a boundary rather
than swing our bat at every ball that is bowled.
Holding some amount of cash gives us the opportunity to deploy whenever a stock trades
at attractive valuations to deploy. Investment opportunities do not come everyday across
all companies and one has to wait to deploy money well.
It is not that we are trying to predict election outcomes, central bank interest rate
decisions, geopolitics or any other event. Is this market timing? Rather than look at it as
timing, it is waiting to deploy at the right valuation. We do not know the time and the stock
but when the opportunity comes, we tend to deploy money relatively quickly."
Full note here - https://amc.ppfas.com/knowledge-center/notes-by-rajeev-thakkar/2024/letter-from-cio-rajeev-thakkar-unitholders-meet-2024.pdf?15112024
