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Just one IT for life

General discussions about equity high-yield income strategies
1nvest
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Re: Just one IT for life

#444734

Postby 1nvest » September 23rd, 2021, 2:33 pm

moorfield wrote:Ok I'll start a separate thread from this one....

viewtopic.php?f=31&t=31320&p=444213#p444213

I'm interested in the risks of holding everything in just one IT, let's say MYI for arguments sake, in case I start feeling very very lazy and/or go really gaga. I would want to leave Lady M (and the Juniors) with very simple directions. Assuming the income produced is "enough", and happy with global diversification, then

Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

richfool
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Re: Just one IT for life

#444737

Postby richfool » September 23rd, 2021, 2:41 pm

1nvest wrote:
moorfield wrote:Ok I'll start a separate thread from this one....

viewtopic.php?f=31&t=31320&p=444213#p444213

I'm interested in the risks of holding everything in just one IT, let's say MYI for arguments sake, in case I start feeling very very lazy and/or go really gaga. I would want to leave Lady M (and the Juniors) with very simple directions. Assuming the income produced is "enough", and happy with global diversification, then

Why bother with a basket?

"I'm interested in the risks of holding everything in just one IT,..."

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

Surely, it would have been most appropriate to have posted this on the "Investment Trust (and UT) board.

I don't know why so many posters seem to gravitate to the "High Yield Shares and Strategies" board and even other boards to discuss Investment Trusts. Maybe the HYP "force" won't allow them to let go and post about IT's on the IT board.
Last edited by richfool on September 23rd, 2021, 2:42 pm, edited 1 time in total.

88V8
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Re: Just one IT for life

#444738

Postby 88V8 » September 23rd, 2021, 2:41 pm

1nvest wrote:
moorfield wrote:I'm interested in the risks of holding everything in just one IT.... Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8

dealtn
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Re: Just one IT for life

#444761

Postby dealtn » September 23rd, 2021, 3:37 pm

88V8 wrote:
1nvest wrote:
moorfield wrote:I'm interested in the risks of holding everything in just one IT.... Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8


Although the OP didn't specify "high yield (income) investing" in his question. By posting here that limits what was a wider question.

moorfield
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Re: Just one IT for life

#444807

Postby moorfield » September 23rd, 2021, 6:32 pm

dealtn wrote:
88V8 wrote:
1nvest wrote:Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8


Although the OP didn't specify "high yield (income) investing" in his question. By posting here that limits what was a wider question.



I would want a yield greater than the FTSE100. The thinking would be to decommission an HYP(ish) portfolio and replace it with a single IT from which dependents could draw an income, and sell off bits if needed.

1nvest
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Re: Just one IT for life

#444950

Postby 1nvest » September 24th, 2021, 9:49 am

moorfield wrote:I would want a yield greater than the FTSE100. The thinking would be to decommission an HYP(ish) portfolio and replace it with a single IT from which dependents could draw an income, and sell off bits if needed.

Might not it be OK to just leave the HYP(ish) alone with the simplification of excess cash in the account(s) being dropped into a broad fund/IT?

Pure HYP1 style (no tinker) is generally fine. Yes over time it tends to look more concentrated but that still works. Of the order 15 original equal capital weighted after a couple of decades drifts to being more like 5 relatively heavily weighted and the other 10 that if combined in effect represent a 6th holding i.e. still reasonably diversified. Even further out and maybe one stock is half of the portfolio value, but where the good/great gains that achieved relative to the others has you far enough ahead that even if that collapsed/failed it still wouldn't be critical. US LEXCX for instance that was similar to a HYP1 style has 19 of a original 30 stocks in 1935 still running and where one is near 50% of the total recent portfolio value, whilst the real portfolio gains have been very comfortable such that even if the portfolio value was halved investors would still have done OK.

moorfield
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Re: Just one IT for life

#444956

Postby moorfield » September 24th, 2021, 10:14 am

1nvest wrote:Might not it be OK to just leave the HYP(ish) alone with the simplification of excess cash in the account(s) being dropped into a broad fund/IT?

Pure HYP1 style (no tinker) is generally fine. Yes over time it tends to look more concentrated but that still works. Of the order 15 original equal capital weighted after a couple of decades drifts to being more like 5 relatively heavily weighted and the other 10 that if combined in effect represent a 6th holding i.e. still reasonably diversified.



Possibly. I am about to embark on this experiment actually. For reasons I won't dive much into here, I am somewhat restricted by my employer currently in buying/selling individual shares but not ITs, so I am planning to reinvest my HYP(ish) divis into building up a holding of MYI or CTY for the next few years. It will be interesting to see how the rest of the portfolio evolves in the meantime.


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