Monday, 21 November 2016

The Dangers of Super-High Yield Investing

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That's what I call good yield
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Apparently the DIY Income Investor approach is an example of Super-High Yield Investing, which John Kingham ('The Dividend Hunter') defines in a recent article as "buying shares where the dividend yield is close to or above twice the market yield."

But is this really the 'dark side' of income investing?

Friday, 11 November 2016

Investors Chronicle High Yield System

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Investor Chronicle's writer James Norrington has been trialling a new High Yield System - with mixed results.

It's interesting to have a look at how this system differs from the DIY Income Investor approach and how well the two strategies have worked.

Thursday, 10 November 2016

De-Risked? (Portfolio Buy)

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If you are a UK-based investor you may - or may not - be enjoying yourself over the last month or so. The recent currency fluctuations have revealed something interesting about the DIY Income Investor portfolio, which will help to guide future investments.

Talking of which, I've been putting some more available cash to work with something a bit counter-intuitive.

Thursday, 27 October 2016

Buying And Selling

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The rapid devaluation of the Pound, following the Brexit vote, boosted the value (in Pounds) of the DIY Income Investor portfolio. That seemed like a market over-reaction to me: and it seems like the currency market is now reappraising Sterling following statements by the Bank of England.

The Pound goes back up and the London Stock Exchange goes back down.Do these fluctuations in currency value offer an opportunity to take quick profits?

Thursday, 13 October 2016

Bond dilemma? (Portfolio Buy)

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Profit-taking - by selling some of my largest holding APF - means the opportunity to buy something new.

It's trite to say but the 'buy' decision is what makes you money - coupled, of course, with selling at the 'right' time. Which is to say, it's difficult.

Investing = Gambling?

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Sometimes the Stock Market is compared to a casino. I don't think that is a fair comparison. Although there is an undoubted random factor in daily events - which affects prices - I believe that there is a lot of skill involved in successful investing.

At least that's what I like to think. However, many observers point to the possibility that seemingly successful investors might just be lucky.

Tuesday, 11 October 2016

Taking Profits (Portfolio Sale)

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The London Stock Market is on a roll - and with it the DIY Income Investor portfolio, which is showing a total return of 32% in 2016 so far.

There comes a point when you need to take profits; but this is always difficult (if not impossible) to time correctly - selling is much harder than buying.

Monday, 3 October 2016

Lucky Timing (Portfolio Buys)


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Usually it is a mug's game to try to time your purchases or sales. The market is such a seething mass of information, opinion, fear and greed that it is almost impossible to know where it is going.

Sometimes, however, you get lucky and buy at the right time...

Thursday, 29 September 2016

Performance Of UK Income Fund Managers

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When you are investing, it is quite difficult to know how well your particular approach is working out. This is why, in the past, as a DIY Income Investor I have looked at various benchmarks related specifically to income investing, as opposed to the other investment strategies.

So, imagine my interest in a comparison of the performance (over five years) of the 'best' professional income fund managers...

Tuesday, 6 September 2016

So, You Think You Know What You're Doing?

“ Auguste Rodin (French, 1840-1917), The Thinker
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It is quite amazing how faulty our human thinking processes can be.

If you are interested in the distortions - or biases - that we regularly come up with, take a look at this article. See how confident you feel after you have read it!