August Update: Interest Earned on Patient Cash
By Michael Lamonaca 1 August 2025
Welcome to the August update for My Patient Investing Lab! As we’ve now entered a new month, it’s time to report on the very first interest payment earned on our strategic cash position.
The core of the “il dolce far niente” philosophy is to ensure that every part of our long-term wealth is working for us, even when we are patiently waiting. Our parked capital of AUD$77,797.48, which is ready to deploy when compelling opportunities arise, has now generated its first piece of passive income in the form of interest.
For 22 days in July, our cash position has earned AUD$217.38 in interest, based on a total annual rate of 4.65%. This was calculated as: (AUD$77,797.48 * (4.65% / 365) * 22). This income, while modest, is a perfect demonstration of the quiet power of compounding—our uninvested cash is also a productive asset, contributing to our ongoing cash flow.
With this interest payment, our total cash position has now increased to AUD$78,014.86. We continue to hold this capital with discipline, patiently waiting for a high-quality business to trade at a significant discount to its intrinsic value. There were no new virtual purchases in July, as no opportunities met my stringent criteria.
I will continue to provide transparent updates on this lab, documenting all interest earned, as well as the accumulation of dividends from our strategic holdings. The journey toward financial freedom is a marathon, not a sprint, and every bit of income helps.
Stay tuned for the next update!