Monday, 4 July 2016

More of the Same (Portfolio Buy)

A lovely summer and the DIY Income Investor portfolio is up 19% (total return, including income and capital gain) so far in 2016. What's not to like?

I'm getting lazier than ever and with two ISA contributions to invest (in different family accounts, of course), I'm going to keep it as simple as possible.

The Benefit of Diversification

Forewarned is forearmed. Investment in the stock market IS risky (compared to holding cash...) - and the risks are not always obvious. The DIY Income Investor portfolio is a case in point: it 'gambles' (not too strong a word) on the possibility that the market is over-pessimistic about certain securities (i.e. those with high yields).

But - as recent political and market events have shown - that is only the start of the process of dealing with risk. So how has the 'risky' DIY Income Investor portfolio weathered the storm?

Sunday, 29 May 2016

Danger, Danger! (Portfolio Buy)

The basic idea behind the DIY Income Investor is to take advantage of Mr Market's manic-depressive reaction to bad news - whilst collecting a nice income for your trouble. In other words, I buy high-yield securities that the market has marked down because there is a potential problem that may, or may not materialise.

The difficulty, of course, is judging whether the risk is worth it...

Wednesday, 18 May 2016

A Lucky Exit (Portfolio Sale)


I have in the past extolled the virtue of turning your back when Mr Market gets depressed and things go 'pear-shaped'. This is in order to help to counteract our instinctive 'monkey brain' reaction to pull out our bananas and run away.

But it is possible to take this concept too far, as I have learnt today. I missed a bit of news - and that's cost me some money, fortunately not too much.

Tuesday, 3 May 2016

A Question of Trust (Portfolio Buy)
Steady, Tiger

The DIY Income Investor portfolio is a cash-producing machine, even when it is sometimes grinding down value on some of the holdings. This is the trade-off that is the mindset of investing in high-yield securities. But at least the accumulating piles of cash (in different family brokerage accounts) means that the portfolio can be constantly refreshed.

Or not. Sometimes 'more of the same' is the best bet...

Sunday, 1 May 2016

The Market Roars Back!
Upwards and Onwards

Wow! Back from a three-week holiday and the DIY Income Investor portfolio has stormed ahead hitting a new all-time high.

The markets turned at the end of January - at least for my unusual collection of investments - and have provided three months of solid gains, totalling around 12%.

There are a couple of lessons I take from this....

Thursday, 3 March 2016

Turning Tide? (Portfolio Buy)

In an earlier post I used a sailing analogy and wrote about being 'hove-to' (or 'parked at sea') while the world-wide economic jitters pulled down stock markets.

Continuing the sailing theme - it feels to me now that the tide might be changing.

Tuesday, 9 February 2016

Heave-To! (Portfolio Sale)

It's been a financial storm out there for DIY Income Investors - but it seems to me that the last thing to do now is run for cover and sell.

When I did my sailing - crewing across, and up-and-down, the Atlantic - I experienced bad weather. When  it gets too bad the final solution is to 'heave-to' and wait out the storm.

Friday, 1 January 2016

Dividends Uncovered?

Enough cover?
'Dividend cover' is one of the key ratios that income investors should be looking at, as it is a measure of how affordable the dividend payments are for a company. However, like most things in investing, it pays to do a little more research into the underlying situation - and the level of commitment of the company management to income-oriented investors.

Saturday, 12 December 2015

DIY vs Funds - The Costs


As a Do-It-Yourself Investor, I always believed costs would always be lower than going to the professional wealth managers - the 'men-in-suits'.

Recently I came across a study that tried to calculate how big the savings of DIY Investing might be - and the results are quite shocking....