dealtn wrote:HYP may well have made sense following that journey. But so would have many of the constructable rules based long term buy and hold strategy. Instead of limiting yourself to a small portfolio of high yielding large UK shares, you could have had similar (possibly better, possibly worse) portfolio results if you had a rules based strategy that said select then leave alone, but whose rules were on low yield, non-UK stocks, or a tracker.
Your positive feeling on the strategy may well have been simply as a result of stopping that "fooling around", "trading" "fishing in the value pool" trying to catch the bottom of the "dogs". HYP provides many of those attributes, but so do many other strategies. especially if you don't need immediate income, limiting a long term buy and hold strategy to a niche smaller pool makes little sense and exposes you to the potential volatility of events (overly) affecting that particular niche.
I would never HYP, (or High Yield Strategy as defined here - but define yield as company level ROCE and it's another ball park) but I have no problem buying as investments some of the shares that qualify in that strategy.
I can't fault the underlying sentiment, but as an amateur investor with limited time for this, I can't recall coming across many other 'constructable rules' for portfolio building. I did find a couple of books along the way, recommending this or that, and tried one (small scale) in my SIPP for a bit of exploratory fun, but it was similar to HYP, but with more fiddling (a forced annual rebalance in a portfolio of 15 stocks, with perhaps 3-5 moving out and 3-5 moving in - just eroding value in fees, certainly at my 'practice' holding levels).
I DID come across HYP at the right time for me. Looked at another way (and this is possible a mode of thinking better suited to investing in the second half of the 20th century), I've got a broad range of large capitalised businesses, and many household names - Vodafone, HSBC, GSK, Unilever, BAE, AZ, BT, Shell, Tesco, etc. On that latter one, I used to think, passing a Tesco lorry on the motorway (back when HGVs were a 'thing'
) that as a part owner in the business I probably owned its back axle (please don't tell me it was probably leased!). And, despite being listed in London, many trade globally. The HYP is probably ~5% of our non-property wealth and ~10% of equity wealth - not the be all and end all, but a useful and meaningful experience over the last decade. I sleep easy with it. I try and avoid putting all my lemons in one basket.