Life - It's what happens whilst you are Hyping

[monabri]

Having recently retired, I decided that I was going to start a HYP portfolio (my pension needs "assistance") - nothing too big (I ain't that rich) - my ambitions being modest. However, one thing that struck me was the amount of time I was spending "evaluating" companies before making a decision to buy. I could spend hours doing it...but then I realised I wasn't doing much else! So, you Lemons, how much time do you spend on reviewing your portfolios? My wife is starting to think I'm surfing the porn channels!!

[grimer]

To be honest, I don't do a huge amount of research. I tend to use a stock screener such as the stepone tool to identify shares that meet my (pretty standard) safety measures. I then check a few other things such as ROCE and search the FT and IC for bad news relating to the share/sector.

I also make a judgement call about the macro outlook - e.g. M&S has passed the tests, but high street retail is probably nearing the end of the first phase of the digital retail revolution and the outlook seems quite negative, so I'll pass and look at the next candidate.

I do take account of foreseeable market events - e.g. Brexit referendum, but I don't go in for general attempts at trading/timing. I have certainly benefited from market timing, but this has generally been dumb luck, rather than any great skill.

Ultimately I think it is impossible to know as much as the pros and even they are flailing around in the darkness producing in depth research that is little more than a comfort blanket. It is probably best (IMHO) to accept that you can't know how a share is going to preform and just buy according to the metrics and obvious market conditions/news. Otherwise it will be an all consuming and ultimately fruitless task.

[idpickering]

To be honest, I don't do a huge amount of research. I tend to use a stock screener such as the stepone tool to identify shares that meet my (pretty standard) safety measures. I then check a few other things such as ROCE and search the FT and IC for bad news relating to the share/sector.

I'm very much in line with grimer on this. I use the screener at digitallook initially to get the likely candidates in relation to yield, then check cover, debt, pe, and the divi progression, or not, before making a purchase. All this ensuring adequate diversification without get over concentrated in any given area. Beyond that, as mentioned elsewhere, I like to be 'hands off', although I do keep an eye on the HYPs progress, especially against the FSE100. If anything I spend more time chatting with like minded HYPers here that I do choosing likely purchases.

Ian.

[funduffer]

It all depends if you are buying a one-off HYP with a lump sum (as originally proposed by PYAD), or intend to build over a number of years adding new capital and reinvesting dividends.

If the former, than there is a lot of work at the start, and then nothing to do, except monitor the income as much as you want to.

If the latter, then there is regular work to do, and it may consume more of your life.

I did a poll once on TMF, which revealed that the majority were builders, not one-off buy and forget HYPers on the HYP practical board. I assume it is a similar story on lemonfool. So it is not surprising from reading this board, it appears to be a lot of work.

I add to my HYP a few times a year, and I love the discussion on this board, and it has become a bit of a hobby, I freely admit.

FD

[JMN2]

I don't spend much time in choosing the companies, I have outsourced research and due diligence to a handful of regular HYPers here, at the same time being very aware of caveat emptor.

[minerjoe]

I don't spend that long at all. I screen a list of companies, look what might fit well in my current portfolio e.g. is there a sector I am missing or perhaps I want to add a lower yeilder with higher growth to round things out.

Then I choose a few companies and check the cover, earnings, dividend track record etc. No one is perfect; I picked AMEC and COB just before they went down the pan. Having said that I've had a few winners, after a day I don't know what you are planning to gleam that you couldn't grasp in an hour. One other point I would say, being contrarian hasn't seen me do too badly - but its more for the brave.

Cheers,

[grimer]

One other point I would say, being contrarian hasn't seen me do too badly - but its more for the brave.

I'd agree with this. Buying a HYP share when the yield spikes can pay dividends (dum dum tshh). I wouldn't necessarily do this when a specific company was experiencing genuine problems, but if a sector takes a hit (like house building after the Brexit vote) then I'm happy to fill my boots while the yield is at 8%+.