MDW1954 wrote:Arborbridge wrote:... HYP is an unusual and relatively high risk policy since it encourages slicing winners and backing those which have fallen.
Arb.
No, it doesn't -- as a matter of policy -- encourage slicing winners at all.
Some here might choose to do that, but many more don't. I don't believe that I have ever "sliced a winner", and I've been a regular on TMF's and TLF's HYP boards since 2005.
MDW1954
Well, I should have been more exact and used some wording such as "HYP as she is practiced by some". That was a silent given Clearly an original HYP did not have top slicing as one of the safety features suggested by later practictioners, but one might also say that HYP as defined on the Lemon Fool isn't that same as the original HYP in any case. But given that top slicing etc is common currency amongst HYPers, I think my statement is still true.
I guess you are saying that your policy is not to top slice shares - however big they get? Or maybe you have some limit but no share has reached it. In truth, my shares rarely reach my limits eaither, but it does happen occasionally.
In a wider sense, HYP does what I said: when you add to tour shares, you buy high yielding shares and dismiss low yielding shares. The safety factors notwithstanding, this tends to be shares which have fallen in price and thus offer a "bargain", not those which have risen in price such as Diageo.
It's a high risk investment policy which relies on its safety factors to mitigate the risks.
Arb.