moorfield wrote:Itsallaguess wrote:
Well I'd tend to agree about the selection side of things when it comes to IT's, but I've got to say that beyond that, once they're purchased, the macro side of things simply isn't a 'concern' for me in the same way that many of my earlier single-company purchases continued to be, and it's that post-purchase 'zen-state' that I personally find immensely useful when it comes to these types of collective income-generators....
And what about
single-IT purchases? In other words, replacing a large portfolio of (FTSE) shares with just
one IT.
For example, would holding your
entire savings in City of London IT (CTY) rather than an 20-25 share HYP (*) be a '
concern' ? And what would it be, because it shouldn't be one of diversification.
(*) I ask because this is a direction I am contemplating later in life once I feel my investments are generating "enough" income, so I'm interested in the one vs. basket of ITs view.
I do appreciate the 'later life' consideration, and this is something that has also partially instructed my initial move into income-Investment Trusts in the first place, and I've got to say that having done so, I think it has potentially huge investment-management benefits both as a
living late-life investor, and also with regards to considering those that might be left to pick through the pieces once we fall off our particular twigs...
With that said, I think moving 100% of my income-investment capital into a
single Investment Trust would not be something I'd consider, mainly for the reason that some have mentioned already, in the '
single-technical-point-of-failure' area, but mainly because I''ve been investing so long now that I've got a really good feel for what I think '
bothers me' in terms of worrying about my investments, and even ignoring the good level of diversification that might go on 'inside' any given single IT investment, I just know that I'd not be comfortable with a '
single income-IT' arrangement, and that I'd need to perhaps have at least five or six different income-IT's to dilute that concern to something that I could easily live with.
The fact that I'd most probably want to cover a number of different themes with my income-investment approach would most probably suit that solution anyway though, so the fact that those two issues would align into a more diverse set of IT investments seems to sit really quite well with me at the moment, and is something I'll most probably work towards later in life, so long as I get the chance!
Whilst I'm here, I'd just like to say generally that I've really enjoyed following this thread, and the wide-ranging discussions emanating from it.
Cheers,
Itsallaguess