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FAQ

For discussion of the practicalities of setting up and operating income-portfolios which follow the HYP Group Guidelines. READ Guidelines before posting
Forum rules
Tight HYP discussions only please - OT please discuss in strategies
Raptor
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FAQ

#4781

Postby Raptor » November 14th, 2016, 12:44 pm

by 88V8 » November 11th, 2016, 6:01 pm
At the moment it seems to me we are missing three things:

1 FAQ. Without an agreed FAQ there is no template against which to moderate. And it's not just a matter of language. This is a technical board, the FAQ are/were quite detailed. We need to get on with agreeing the initial FAQ amongst ourselves. A voting system might help.


Been waiting for someone else to kick this off, but after Clarimans analogy of TMF High Rise V Lemon House, thought if we could agree a basic FAQ then it would be a lot easier for Clariman & Stooz and any moderator going forward.....

I have plagiarized TMFs FAQ.

What is this forum for?

This forum is for discussing practical issues with running shares in a High Yield Portfolio (known as 'HYP') strategy for long term income growth.
What sort of items are welcome on this forum?

Anything to do with the practical running a HYP. For instance:

• what would currently be a good choice of share to add to a HYP
• how to reinvest dividends in a HYP
• how to invest further money in a HYP, e.g. from regular savings or a takeover or other corporate action
• reports on how HYPs have performed in practice are welcome. But please keep them factual and relevant.
• safety factors used, i.e. median values, yield (level, forecast, past, rising, cuts, holds, against FTSE100 etc).
In addition, if you feel that adding the rest of your holdings (IT’s, Value investments etc) so as to give a more rounded view then that is acceptable but may not be discussed as part of the HYP strategy.
We must be aware that subscribers to this forum may be in many different stages of their HYP and depending where they are they may have different objectives to the rest of us. They may also be changing/defining their “safety factors” that are relevant to them at that time in their strategy.
Everyone is allowed their own views, there are no right or wrong ways to implement a HYP strategy, just different strategies, please respect these differences. Express your opinion and move on.

What isn't this forum for?

This forum is not the place for discussions about other types of strategy, not even about other high yield share investment strategies. It is also not the place to discuss whether HYP strategies work or not, their theoretical underpinnings, what to use instead of them, etc. The High Yield Strategies forum maybe suitable.
Although we all welcome Capital growth, this forum is not a place for its discussion. Although, hopefully, a successful HYP strategy should lead to Capital growth.

What are the hallmarks of a HYP strategy?

The type of strategy discussed on this forum invests in shares:

• Primarily for a growing income. In the long term, capital growth can be expected to follow success in growing the income, and many HYP investors who don't yet need the income will reinvest it to grow the income further. But capital growth of the portfolio is not the main investment aim of a HYP.

• With high dividend yields, and safety factors that suggest that their dividend income is sustainable and will hopefully grow. Typical safety factors used are one or more of high market capitalisation, good dividend cover, a good record of dividend growth, and low gearing. HYP strategies vary in which safety factors they use, so no individual safety factor is essential - but having some of them is!


Raptor.

Clariman
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Re: FAQ

#4896

Postby Clariman » November 14th, 2016, 5:14 pm

Hi Raptor

Have you asked TMF if we can reuse this? Was it written by TMF themselves or by a fool? If the latter, are they on this site and we can ask them?

Thanks
Clariman

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Re: FAQ

#4902

Postby Gengulphus » November 14th, 2016, 5:25 pm

Sorry, but while I'm all in favour of getting ourselves a FAQ about the board's topic as soon as possible, I really think it has to wait until we have polls, so that we can judge how acceptable changes are in a way that is not based on who can post the most. If you weren't making significant changes to it, we could probably use the TMF FAQ as a temporary holding position. But you are: you've removed 3 out of the 5 'hallmarks' from the TMF FAQ.

Gengulphus

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Re: FAQ

#4912

Postby Gengulphus » November 14th, 2016, 5:50 pm

Clariman wrote:Have you asked TMF if we can reuse this? Was it written by TMF themselves or by a fool? If the latter, are they on this site and we can ask them?


I wrote the original text:

https://web.archive.org/web/20161114173358/http://boards.fool.co.uk/am-i-on-the-right-board-10478128.aspx

TMFTarantula edited it to conform with TMF house style (and possibly a few other things - I don't recall for certain and am not going to try a point-for-point comparison!) to serve as the initial FAQ for High Yield - HYP Practical when that board was set up, acknowledging my original authorship at the bottom:

https://web.archive.org/web/20120901152816/http://boards.fool.co.uk/faq-the-purpose-of-this-board-11101244.aspx

Some years later, he edited it further to add questions 7-9 to its end (and again possibly a few other things):

https://web.archive.org/web/20160419191923/http://boards.fool.co.uk/faq-the-purpose-of-this-board-12648855.aspx

Gengulphus

Arborbridge
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Re: FAQ

#4998

Postby Arborbridge » November 14th, 2016, 8:49 pm

If we can clarify that TMF will let us use the same FAQs, why not use it and have done with it?

It worked well enough before, so what is the problem?


Arb.

staffordian
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Re: FAQ

#5000

Postby staffordian » November 14th, 2016, 8:53 pm

Arborbridge wrote:If we can clarify that TMF will let us use the same FAQs, why not use it and have done with it?

It worked well enough before, so what is the problem?


Arb.


Agreed.

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Re: FAQ

#5066

Postby Breelander » November 15th, 2016, 12:39 am

staffordian wrote:
Arborbridge wrote:If we can clarify that TMF will let us use the same FAQs, why not use it and have done with it?
It worked well enough before, so what is the problem?
Arb.


Agreed.


Tentatively, yes - I'd agree too. But the problem on TMF was sometimes an over-zealous interpretation of the 'rules' leading to an abrupt 'Closed please post somewhere else..' as a thread just started getting interesting. At least here we can actually move threads to another board, or even spin off the OT drifting parts to a new thread on this or another board. We'd need Mods who appreciated the finer details of the subject for that to work well, though.

I agree with Gengulphus, Polls are absolutely essential before we can settle this properly.

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Re: FAQ

#5070

Postby Deev8 » November 15th, 2016, 4:12 am

Breelander wrote:I agree with Gengulphus, Polls are absolutely essential before we can settle this properly.


A poll really is the only way to gauge overall agreement.

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Re: FAQ

#5076

Postby kempiejon » November 15th, 2016, 6:25 am

A poll really is the only way to gauge overall agreement.


Well we could have a list of ayes or nays.

Bubblesofearth
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Re: FAQ

#5091

Postby Bubblesofearth » November 15th, 2016, 8:17 am

Arborbridge wrote:If we can clarify that TMF will let us use the same FAQs, why not use it and have done with it?

It worked well enough before, so what is the problem?


Arb.


It didn't work that well. Many off-topic threads developed involving a lot of different posters. That suggest to me that the FAQ's were somewhat constrictive.

In his latest update on HYP1 Pyad has provided information on income growth, cap growth and benchmarking. Also inherent in the portfolio update is the level of diversification and evolution of the balance between shares (the changing shape of a 15-share portfolio). I would think that all of these factors are important to most people setting up or running a HYP (or any other share portfolio for that matter). It would be difficult to have to move over to a separate board to discuss these issues once they have been raised on the HYP board by a particular post.

For example, the FAQ given above lists a number of so-called safety factors but omits the single most important one which is level of diversification. Are we really to pore over yield history, dividend cover, market cap etc but have to go elsewhere for any discussion of the very practical question of how many shares to buy? It is, after all, regarded as the only free lunch on offer by the market!

If we are going to be restricted to discussion of which share to buy next then we're going to end up with a very monochromatic and, dare I say it, somewhat boring board. If that's what the majority want, fine, but polls seem a good idea to at least find out.

BofE

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Re: FAQ

#5119

Postby jackdaww » November 15th, 2016, 9:33 am

kempiejon wrote:
A poll really is the only way to gauge overall agreement.


Well we could have a list of ayes or nays.


===============================

sounds very democratic , but do i understand polls ?

can they be rigged ie by choice of questions etc ??

Arborbridge
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Re: FAQ

#5135

Postby Arborbridge » November 15th, 2016, 10:05 am

Many off-topic threads developed involving a lot of different posters.


Because people didn't adhere to the purpose of the board.
That suggest to me that the FAQ's were somewhat constrictive.

That to me suggests that people are not prepared to follow simple guidelines and stay on topic. THat's why we have FAQs and Mods.
Given a free for all, we just get long boring threads with various agent provateurs posting disingenuous questions and trying to have the last word.

we're going to end up with a very monochromatic and, dare I say it, somewhat boring board.

The HYP practical was one of the liveliest and best supported boards on TMF.
but have to go elsewhere for any discussion of the very practical question of how many shares to buy?

Of course that's not true. We have had many discussions deemed on topic about all practical aspects of running a HYP. Diversity, gearing, Income Reserves, Safety Margins - all these topics were aired quite legitimately on HYP Practical. The FAQs are not so restricted as you are making out. The main restriction which some dislike is that it is for discussing ways of running a HYP, but not whether schemes other than HYP are a better idea. But since this is a specialist HYP board, why is that unreasonable? There's a general HY board for that which is quite unfettered.

I see no reason not to have a fairly tightly controlled board for HYPers. The problem with polls, apart from the question, is who will vote? If those who want to undermine the spcialist board are in the majority, they would win: but why would that be a fair result when they already have the HYSS board where they can range freely? And why would that be fair to all those who prefer a specialist board? It wouldn't be, and one couldn't restrict voting only to HYPers! This sounds like our own version of the Midlothian Question.
Arb.

jackdaww
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Re: FAQ

#5176

Postby jackdaww » November 15th, 2016, 11:25 am

:|
Bubblesofearth wrote:
Arborbridge wrote:If we can clarify that TMF will let us use the same FAQs, why not use it and have done with it?

It worked well enough before, so what is the problem?


Arb.


It didn't work that well. Many off-topic threads developed involving a lot of different posters. That suggest to me that the FAQ's were somewhat constrictive.

BofE


=======================

it didnt work well for me .

it was weeks before i even discovered FAQ and "the purpose of this board" , those weeks wasted my time and others time , and there was aggravation all round .

When i came across this HYP practical board some years ago , as a newcomer , the acronym "HYP" led me to think it was a high yield portfolio.

i very belatedly realised this was a VERY SPECIAL sort of high yield portfolio - think PYAD , strategic ignorance, annuity ..

The word "practical" does not convey this speciality nor any other useful meaning.

The Board is mis-named and misleading so.

to incorporate some clues within the title should not be beyond the wit of some of the very capable users of the board.

. :|

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Re: FAQ

#5222

Postby Bubblesofearth » November 15th, 2016, 1:14 pm

Arborbridge wrote:I see no reason not to have a fairly tightly controlled board for HYPers. The problem with polls, apart from the question, is who will vote? If those who want to undermine the spcialist board are in the majority, they would win:
Arb.


I don't think anyone wants to undermine the board. It's more that issues such as capital performance, diversification, tinkering (or not) and benchmarking are central to almost all investment portfolios and, for most people, will be important for a HYP as well. It's therefore difficult to not segue into a discussion of these issues when selecting or debating the merits of actual individual shares. Putting some aspects of HYP on one board and others on a different one looks schizophrenic to me.

As I've mentioned elsewhere we also need to be aware that there is likely to be lighter moderation on here than there was on TMF and there may therefore not be a choice as to whether more flexibility is allowed on this board. Better maybe to go with the flow than rage against it?

BofE

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Re: FAQ

#5230

Postby Gengulphus » November 15th, 2016, 1:22 pm

Breelander wrote:But the problem on TMF was sometimes an over-zealous interpretation of the 'rules' leading to an abrupt 'Closed please post somewhere else..' as a thread just started getting interesting. At least here we can actually move threads to another board, or even spin off the OT drifting parts to a new thread on this or another board. We'd need Mods who appreciated the finer details of the subject for that to work well, though.


Agreed about the symptoms of the problem: discussions being shut down abruptly by moderator 'thread-stoppers' was a problem with TMF's moderation system. I say with the moderation system and not with HYP Practical's FAQ because it happened on other boards as well - for example, Legal Issues - Practical suffered a lot from it.

And I agree that the ability for moderators to move threads, split them, etc, holds out quite a bit of hope of being part of the cure - certainly the TMF moderators said on a number of occasions that such an ability was high on their wish-list for developments to the TMF board software. I would be cautious about expecting too much of it, though: we must not expect to be able to routinely make a mess and have the moderators tidy it up for us - volunteer moderators are unlikely to stand very long for that! They're there to tidy up inadvertently-created problems - e.g. a newcomer fails to understand the rules and posts in the wrong place, a moderator moves the post to the right place, tells the newcomer what has been done and why. If people persistently just post wherever is most convenient without regard to the moderator work they're creating, though, I suspect they'll encounter a rapidly-escalating moderator response! In other words, I suspect we're still going to get "please post somewhere else" requests from moderators and firm action will be taken if they're ignored: the benefit from the improved software capabilities will not change that, but just make the initial moderator response friendlier (moving the post(s) concerned rather than deleting them or 'stopping' the thread).

I don't agree that the problem at TMF was over-zealous interpretation of the 'rules': I would actually say that it was under-zealous application and to some extent writing of them. The main purpose of creating the TMF HYP Practical board in 2008 was to allow people a refuge where they could discuss the practicalities of running their HYPs somewhere away from strategic arguments about whether they should be running HYPs at all - arguments that had been raging on the original High Yield Portfolio board (now named High Yield - Share Strategies) for many months. I see a couple of flaws in the TMF FAQ in that respect: it should probably explicitly state that purpose very early on, to make it the message people are most likely to carry away from it, and it doesn't really address the issue of other strategic arguments, such as whether to use a tinkering or non-tinkering HYP strategy, whether one's strategy should use 'strategic ignorance' or not, etc.

That's the under-zealous writing of the 'rules' that I see. The under-zealous application of them is basically that problems were reported under-zealously and so had become fairly major by the time the moderators could deal with them. If an off-topic offshoot of a discussion was reported and dealt with early, the moderators could (and I think usually would if they agreed that it was significantly off-topic) remove the post concerned, which at least gives its poster a sensible opportunity to re-post elsewhere. I know that not many did, and understand why, but that was less bad IMHO than having a significant discussion develop, get interesting to some of the board's readers, and then be 'thread-stopped', leaving it near-impossible to get restarted elsewhere because it requires lots of people to go along with doing so... And for the moderators, 'thread-stopping' was often the only real option at that point: they could in theory 'prune' the thread, removing at least the main off-topic posts and leaving the on-topic ones, but that was often difficult (e.g. because the two types of material would often be mixed up in the same post) and would always take more time if the problem had been allowed to grow because of the number of posts to work through.

Those are potential problems even with moderators being able to move threads, split them, etc: if such measures are needed here, it's going to be important that the need is reported early. Which incidentally does not mean I think all off-topic material needs to be reported at once. Lots of off-topic remarks are made and are completely harmless - e.g. if someone comments that they've just had their first child and is congratulated, then strictly speaking both the comment and the congratulations are off-topic, but if I were a moderator and it was reported to me, the only thing I would do is consider telling the reporter not to waste my time! But if off-topic material looks like becoming controversial, voluminous (e.g. because of deep-diving into it) or otherwise a major distraction from the board's topic, it's better reported and dealt with early.

Returning to the question of the cure for the problem, I don't think moderator ability to move threads, split them, etc, is the full cure. As well as the issues with it that I've mentioned above, there is the fact that it was more difficult than necessary on TMF for a user to branch an off-topic reply off into a different board - rather than just clicking "Post Reply" and cut-and-pasting suitable quotes into your reply from the conveniently-supplied copy of the post you're replying to, it involved going to the new board, clicking "Post New", cut-and-pasting a link to the post you're replying to and suitable quotes from it (and having to make those things available yourself rather than having them conveniently supplied in the posting window), submitting that post, then returning to the original board and posting an "I've replied in <link>" reply. It definitely takes more time even if you know what you're doing! And I don't see any signs that it's any easier here.

So a second highly-desirable part of a cure is IMHO a streamlined "Post Reply in Another Topic" facility. As well as making things easier for users, it will be easier for the moderators if they can say "I've moved your reply to another thread - but please use the Post Reply in Another Topic button in future when appropriate. It will make both of our lives easier...". Unfortunately, I don't yet see any signs of such a thing, though that could easily be just that I haven't yet looked in the right places!

This post has turned out to be a bit of a ramble - please take it as general ideas I'm throwing out about what wasn't working well at TMF and how it could work better here, not definite conclusions! And please note that it's about topic splits in general, not any particular topic split. E.g. it applies just as much to the problems I sometimes had at TMF working out how far to go replying to tax questions on the HYP board as to whatever ends up being the topic split between Strategic and Practical here. Basically, simple factual answers to relevant tax questions for a HYP were on-topic; wandering off into more esoteric tax matters was not; when the boundary was crossed wasn't easy to judge!

Gengulphus

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Re: FAQ

#5236

Postby Arborbridge » November 15th, 2016, 1:33 pm

It's more that issues such as capital performance, diversification, tinkering (or not) and benchmarking are central to almost all investment portfolios and, for most people, will be important for a HYP as well. It's therefore difficult to not segue into a discussion of these issues when selecting or debating the merits of actual individual shares.


I think you and I must have been reading different boards in the past. The HYP practical board always did allow discussion of these issues, so I'm not quite clear why we would need lighter moderation.

it was weeks before i even discovered FAQ and "the purpose of this board" , those weeks wasted my time and others time , and there was aggravation all round .


Jackdaww, so some extent I agree with you. I had similar problems with deletions and gentle explanations from the mods before the penny dropped. It was my own fault because I was lazy and did not read the FAQs. Neither of us can blame the system for that: it was just part of the learning process which wasn't long in the context of the years I spent on the Fool.
If in some way it can be made clearer, I'm all for that. But what we cannot do is mitigate someone like me who started posting but didn't read the FAQs - it was entirely my own fault!

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Re: FAQ

#5267

Postby Bubblesofearth » November 15th, 2016, 3:08 pm

Arborbridge wrote:
I think you and I must have been reading different boards in the past. The HYP practical board always did allow discussion of these issues, so I'm not quite clear why we would need lighter moderation.


I was in part responding to the FAQ listed above, from which;

What isn't this forum for?

This forum is not the place for discussions about other types of strategy, not even about other high yield share investment strategies. It is also not the place to discuss whether HYP strategies work or not, their theoretical underpinnings, what to use instead of them, etc. The High Yield Strategies forum maybe suitable.
Although we all welcome Capital growth, this forum is not a place for its discussion. Although, hopefully, a successful HYP strategy should lead to Capital growth.


Benchmarks are primarily to assess whether HYP works or not.
If you agree cap performance can be discussed then that too is at odds with the above.

BofE

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Re: FAQ

#5277

Postby Gengulphus » November 15th, 2016, 3:33 pm

jackdaww wrote:When i came across this HYP practical board some years ago , as a newcomer , the acronym "HYP" led me to think it was a high yield portfolio.

i very belatedly realised this was a VERY SPECIAL sort of high yield portfolio - think PYAD , strategic ignorance, annuity ..


In that case, I think you overcompensated - the definition of "HYP" on that board does not require strict adherence to what pyad says, does not mention strategic ignorance, does not mention annuities, ...

jackdaww wrote:The word "practical" does not convey this speciality nor any other useful meaning.


It doesn't convey the less-extreme speciality that actually applies to the board, agreed - that job had to be left to the FAQ's definition of HYP, being a bit too big to fit into the (IIRC) 32-character limit on the names of TMF boards...

It does convey a useful meaning - that the board is about running a HYP in practice and not for things like endlessly debating whether it's a good idea to use a HYP strategy. Indeed, that was a very important part of the meaning when the board was set up and for a few years afterwards: such debates had been raging on the old board for months and only slowly died away after the board split.

jackdaww wrote:The Board is mis-named and misleading so.

to incorporate some clues within the title should not be beyond the wit of some of the very capable users of the board.


Clues were incorporated - the acronym "HYP" for the type of strategy used (and the title already having said "High Yield" is a clue that it's not just high-yield strategies - the acronym has to be adding something extra!) and the word "Practical" for the type of discussions.

Also, the whole exercise was constrained by the fact that we already had over 7 years of "HYP" having been used on TMF as the name for that type of strategy. I've known for a very long time that the acronym "HYP" for the type of strategy is poor terminology due to the obvious-but-wrong interpretation as any old "high yield portfolio". But I also know that changing established terminology is hard and has many costs - and it's now been established for around 16 years...

If anyone wants to try changing it, it really is up to them to come up with the new term and to put the work into getting it accepted - I'll reserve my efforts for tasks where I think I've got a decent chance of success!

Gengulphus

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Re: FAQ

#5308

Postby Gengulphus » November 15th, 2016, 4:47 pm

Bubblesofearth wrote:I was in part responding to the FAQ listed above, from which;

What isn't this forum for?

This forum is not the place for discussions about other types of strategy, not even about other high yield share investment strategies. It is also not the place to discuss whether HYP strategies work or not, their theoretical underpinnings, what to use instead of them, etc. The High Yield Strategies forum maybe suitable.
Although we all welcome Capital growth, this forum is not a place for its discussion. Although, hopefully, a successful HYP strategy should lead to Capital growth.


Benchmarks are primarily to assess whether HYP works or not.
If you agree cap performance can be discussed then that too is at odds with the above.


With regard to benchmarks, there has always been a borderline area with regard to reporting on how HYPs have performed: such reporting is about something very practical, but it very easily leads one on into "what is and isn't good strategy?" discussions. Usually somewhat futilely, because one needs to look at a lot more data than just one specific portfolio's performance to draw any real conclusions about its strategy...

Anyway, being a borderline area, one needs to look at just where the borderline is. The TMF FAQ contains the first paragraph above, including the "whether HYP strategies work or not" part, but it has an extra clue later on, at the end of question 4:

In addition, reports on how HYPs have performed in practice are welcome. But please keep them factual and free of 'advocacy' of HYP strategies - posts about why HYP strategies should be used are just as off-topic here as posts about why they shouldn't.


I.e. the borderline is crossed when you move on from factual statements about how a HYP has performed in practice to conclusions about HYP strategies. "HYP1 has outperformed the FTSE 100 index in its first 16 years" is OK, moving on to "so HYP1's strategy is a good one" crosses the border - and similarly "HYP1 has developed massive imbalances in its first 16 years" is OK, moving on to "so HYP1's strategy is a poor one" crosses the border.

Quite a subtle distinction, I know, and I'm not saying that minor border incursions are a problem - I would fully expect the TMF moderators to only respond significantly to border incursions if they seemed likely to stir up a significant strategic argument. But supplying some benchmark values in a portfolio report is just within the border, I think.

With regard to the statement about the forum not being the place to discuss capital growth, that doesn't come from the TMF FAQ, and it's rather at odds with the first 'hallmark' (which does):

Primarily for a growing income. In the long term, capital growth can be expected to follow success in growing the income, and many HYP investors who don't yet need the income will reinvest it to grow the income further. But capital growth of the portfolio is not the main investment aim of a HYP.

The two words I've emboldened imply that capital growth can be an investment aim of a HYP - it's just not the primary one. And it would be rather silly to try to ban all discussion of an investment aim of the portfolio being run. So basically, I think the statement about the forum not being the place to discuss capital growth needs toning down.

But more important, the complete dropping of three of the TMF FAQ's five 'hallmarks' is a massive change, losing any mention of diversification, direct holding, low level of trading and being fully-invested from the definition. They were included originally to get a sufficient degree of common ground between the strategies whose running was discussed on the TMF board - there was simply no point putting e.g. active traders using TA and LTBH HYPers together on a board intended for discussion about how they make everyday practical decisions for their portfolio. Quite possibly some of them need tweaking for the different environment here - but not wholesale chucking away without a word of rationale!

Gengulphus

Gengulphus
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Re: FAQ

#5316

Postby Gengulphus » November 15th, 2016, 4:55 pm

Bubblesofearth wrote:For example, the FAQ given above lists a number of so-called safety factors but omits the single most important one which is level of diversification. Are we really to pore over yield history, dividend cover, market cap etc but have to go elsewhere for any discussion of the very practical question of how many shares to buy? It is, after all, regarded as the only free lunch on offer by the market!


Indeed. It's not in there because it's a safety feature of a portfolio as a whole, whereas yield history, dividend cover, market cap, etc, are safety features of individual shares. As a result, they were in two different 'hallmarks' in the TMF FAQ - and one of them got dropped and the other didn't, with no reason given.

Gengulphus


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