The Lemon Fool

Young investors are more inclined to opt for investment trusts over individual stocks.

https://www.dailymail.co.uk/money/inves ... demic.html


Jolly sensible. No HYP nonsense for them.

Discuss.

better off with cheap index trackers
Pah! Harrumph!

I saw that too. As usual, it raised more questions than answers:

Were the "returns" total returns or capital returns? (Were the older investors taking an income?)

If the younger investors were investing more in "growth" shares (makes sense) and the older investors more in "income" shares, what is the significance of the result?

XFool wrote:I saw that too. As usual, it raised more questions than answers:

Were the "returns" total returns or capital returns? (Were the older investors taking an income?)

If the younger investors were investing more in "growth" shares (makes sense) and the older investors more in "income" shares, what is the significance of the result?

I read it as Total Return. What is interesting I thought mentioned is the age demographic of individual stock pickers, which I hazard is by and large similar to that of LF posters and chimes with one of my own suspicions: HYP is an old man's hobby.

moorfield wrote:Young investors are more inclined to opt for investment trusts over individual stocks.

https://www.dailymail.co.uk/money/inves ... demic.html


Jolly sensible. No HYP nonsense for them.

Discuss.

The DM doesn't get my click were those high yield choices?

AleisterCrowley wrote:better off with cheap index trackersPah! Harrumph!

Love a tracker (I still have mine) especially for a young investors but same question, high yield trackers?

kempiejon wrote:The DM doesn't get my click were those high yield choices?

That would be telling. Click. You know you want to...

If it hadn't been comprehensively discredited by last year's Covid Crash then perhaps HYP or something like it might still have people seriously considering it, as it is, many are now seeking the stability that ITs offer or at the very least a melded approach. I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.

moorfield wrote:
What is interesting I thought mentioned is the age demographic of individual stock pickers, which I hazard is by and large similar to that of LF and chimes with one of my own suspicions:

HYP is an old man's hobby.

I'm not quite sure that tells the full story though...

I think it's got more to do with the evolution of investment options since that older generation took an interest, and I remain convinced that many of that older generation might have made different decisions were they to have had some of the alternative options that are available today...

Cheers,

Itsallaguess

Itsallaguess wrote:
I think it's got more to do with the evolution of investment options since that older generation took an interest, and I remain convinced that many of that older generation might have made different decisions were they to have had some of the alternative options that are available today...

Plenty of high yield investment trusts were available to buy in November 2000, I think.

moorfield wrote:
: HYP is an old man's hobby.

Not this old man's. I am I suppose primarily an income investor but certainly not HYP. I have never seen it in the tightly bound and regulated Board such as TLF promotes as being in any way sensible. If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod

Padders72 wrote:I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.

I agree with your first sentence, but not the second. I think investing in UK equities for a retirement income is sound, but not the ideas of "never sell" or "strategic ignorance" . Portfolio adjustment is needed from time to time imo. How and when one does that could probably fill up a forum all of its own ...

Dod101 wrote:
Not this old man's. I am I suppose primarily an income investor but certainly not HYP.

I guess you must post on HYP-P then because you are now contemplating taking a HYP approach to investing?

Seems I must be entering my second childhood.

moorfield wrote:

Padders72 wrote:I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.

I agree with your first sentence, but not the second. I think investing in UK equities for a retirement income is sound, but not the ideas of "never sell" or "strategic ignorance" . Portfolio adjustment is needed from time to time imo. How and when one does that could probably fill up a forum all of its own ...

Well just to clarify, I wasn't suggesting that investing in the FTSE 100 single companies was wrong, just that only doing so seemed a bit bloody minded! And yes those other factors you mention always had me scratching my head too. Strategic ignorance just seems like ignorance to me, though I know the acolytes often say the original intention is misinterpreted if viewed that way.

moorfield wrote:

Dod101 wrote:
Not this old man's. I am I suppose primarily an income investor but certainly not HYP.

I guess you must post on HYP-P then because you are now contemplating taking a HYP approach to investing?

Because I am primarily an income investor, I am likely to have a leaning towards high yield shares but I am certainly not and never have been a pyadic disciple of the HYP. I occasionally post on the HYP Board but usually because I do not check which Board the post that I am interested in is on.

Dod

Maybe I'm missing something here but (admittedly with hindsight) investment trusts can have a particular advantage over individual share holdings during a dividend-cutting pandemic because the trust manager can maintain the dividend, and therefore a semblance of normality, by selling off the underlying assets to keep the investment looking good. So for a finite amount of time they can weather such a storm and appear to be immune.

Whether these young investors saw this in advance and beat their older competitors I do not know.

Chris

Dod101 wrote:I occasionally post on the HYP Board but usually because I do not check which Board the post that I am interested in is on.

Room for improvement. C.

csearle wrote:Maybe I'm missing something here but (admittedly with hindsight) investment trusts can have a particular advantage over individual share holdings during a dividend-cutting pandemic because the trust manager can maintain the dividend, and therefore a semblance of normality, by selling off the underlying assets to keep the investment looking good. So for a finite amount of time they can weather such a storm and appear to be immune.

Whether these young investors saw this in advance and beat their older competitors I do not know.

Chris

An IT investor is also acquiring a considerable amount of diversification, within each single IT, as the trust will hold many stocks in many sectors (depending on the mandate of the particular IT) and may often have access to stocks that individual investors may not.

Dod101 wrote:If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod

Err, Dod were you aware that a new IT heading for the moon, well at least in to space, is attempting to launch tomorrow?
"Seraphim Space Investment Trust"

I confess that when younger I invested in a investment trust aiming to trade options for profit. It didn't work out well.

However I do question your assumption about IT's. Given that I know you hold SMT, not known for being boring.

Urbandreamer wrote:

Dod101 wrote:If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod

Err, Dod were you aware that a new IT heading for the moon, well at least in to space, is attempting to launch tomorrow?
"Seraphim Space Investment Trust"

I confess that when younger I invested in a investment trust aiming to trade options for profit. It didn't work out well.

However I do question your assumption about IT's. Given that I know you hold SMT, not known for being boring.

Thanks. I did not know about the IT heading for the moon, but the fact is that many ITs are boring, which is surely good. We do not want excitement from investment trusts, but long term investment horizons leading to good results on the whole.

Dod