Readjusting Cash/Stock Ratio
We are going to do in an important step to increase our profits – readjust the cash/stock ratio. When we started out, we used 2/3 stock and 1/3 cash. Checking after one year, we find that the percentage of cash has increased. We want to take this excess cash and buy more stock with that. Our PORTFOLIO VALUE was $12,543. 1/3 of that is $4,139. Our current cash amount is $5,134 so: $5,134 - $4,139 = $995 of extra cash. We use that extra cash to buy the + 72 shares you see in the June 1995 spreadsheet entry. That's why you see (709) in BUY (SELL) ADVICE (actual BUY (SELL) ADVICE & BUY 995 in MARKET ORDER BUY. I wanted to show you what will do. Will fix things up next month.
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