Despite the hot weather the boards have been busy, with a high yield birthday, a shave that's a bit too close for comfort, and uncommon praise for today's youth.
HYPpy Birthday
The High Yield Portfolio (HYP) has long been an investment strategy favoured by people looking for a steady, and rising, stream of dividend -- for example, to provide a retirement income.
A stalwart of the HYP board, Gengulphus, started a "demonstration" HYP last year, and celebrated its (approximate) first birthday by writing up a Year 1 report.
"The portfolio is in principle one that saves £600 per month, accumulating the regular savings along with any dividends and other cash payments received until they reach £1,800 or more, and then spends the accumulated cash on a share purchase with a £12 broker commission. It is therefore currently purchasing once per quarter, and expected to continue to do so for quite a while, but will eventually start purchasing more frequently when the dividend stream becomes large enough. It is a non-tinkering HYP, in the sense that it does not do voluntary sales."
So, given that the past year has been one of the most turbulent in stock market history, how did it fare? You'll have to read the report to find out.
Would you buy the company?
Everyone of a certain age -- okay, everyone who's at least middle-aged like me -- will remember the advert for a Remington shaver in which Victor Kiam announced "I liked it so much, I bought the company!".
Well, another shaving product company -- King of Shaves -- is offering consumers the chance to invest direct, via a high-yielding "Shaving Bond". They make a good product, which is easy to understand, so it's probably a good investment, right?
Paulypilot doesn't think so:
"All investments are about risk & reward. Without the accounts information, you are effectively risking 100% of your money, for a potential 6% return. Does that sound sensible to you???
... The other key thing is liquidity. With most shares (other than the smallest small caps) there is the liquidity to sell your holding whenever you want (providing it's not too large a holding), whereas these 6% Bonds you mention from King of Shaves don't seem to have an aftermarket, which is a huge difference to risk/reward. What happens if you need the money for something else unexpectedly?"
And others in the thread seem to share the same opinion.
The Youth Of Today
I suspect many Fool readers will also remember Monty Python's 'Four Yorkshiremen' sketch, with its theme of bemoaning 'the young people of today'. And the media seems to have an endless supply of stories about the poor behaviour and lack of manners in today's children.
So it was really refreshing to read the following by expatspouse:
"The Youth of today... are GREAT!!.
I had rather a busy day yesterday. I was up until 1 in the morning Monday night finishing memory books for the primary school leavers in our class (four this year), caught some shut eye and was up again at 6.30 to make two batches of brownies and a batch of muffins. I cycled to school (approx 8 miles away) at nine, in time to see the presentation of my son's primary school class photos and enjoy their end of school party. (First batch of brownies consumed).
Dashed home after clearing up after the party to get ready for party number two. My eldest son's pool party at one of the outdoor pools we have here...
So what prompted expatspouse's outburst of enthusiasm about young people? Read on...
Ooh me head
Another month has flown by, and it's almost time for the London Fool Social again.
Accolades from posts about last month's event include "You all missed a great evening... ", "It was a good one... " and "Argh! Ooh me head...", so why not come along next Tuesday, 7 July, and join in the fun.
What's in a name?
Incidentally, as usernames go, Gengulphus -- author of the HYP report mentioned above -- is one of the more unusual ones on the boards (and it's up against some stiff competition!). So where does it come from?
Well, Saint Gengulphus was a Burgundian knight of outstanding piety and charitableness, who had the distinct misfortune to be murdered by his wife's lover. Quite what relevance that has to investing escapes me, but it certainly makes for a great username.
My own posting alias -- TMFTarantula -- obviously stems from the fact I have eight legs, and liquidize my prey before eating it. (Actually, it's because -- and any arachnophobes may wish to skip this bit -- I have kept a number of very large and very hairy tarantulas for many years now.)
If there's a story behind your username, and you'd like me to share it with everyone in a future article, please let me know.
Last week's update: Another Debt Bites The Dust
