EssDeeAitch wrote:I have another week I expect before actually buying (waiting on monies) and it is very likely that I will revisit my selection and Tate may be a casualty and I would really welcome any suggestions or comment on my previous reply
How far down the FTSE rankings will you go to seek out high yields? What minimum Market Cap do you set?
If I read between the lines, you are buying a full HYP portfolio in one go with a lump sum?
If that is the case, it explains why you are looking further down the lists. Your (all our) problem with this approach is that the criteria that you filter with get weaker and weaker as your need to get more candidates in one hit increases. In the original HYP, the 15 shares were considered enough, with several discussions about how adding a 16th share didn't reduce portfolio risk nearly as much as you'd think. Most of us feel more comfortable with a higher number of holdings, but not all bought at once. I'm afraid I don't have the links for these discussions, even if they're still accessible, what with the UK Motley Fool discussion boards having been taken down.
Most of the people on here who talk about larger portfolios will have built up their holdings over time. Hence the inclusion in some of them of TATE (mine included) as at one time it was a reasonable candidate. Over time, with the vagaries of company fortunes swapping different shares in and out of the filter results as we go along, there will be more opportunities for diversification without compromising selection criteria. Note that it's likely to be years or decades using the latter approach; drip-feeding over a few months or a couple of years is unlikely to give you as much choice as you'd want to get to the 20-30 holdings level.
One option (not tested by me) if you have a lump sum and a target of, say, 25 shares, is to filter as normal (maybe discuss the filters over here?) and buy the shares that actually meet your filter criteria, each getting 1/25th of the lump sum. Assuming you don't get 25 suitable candidates, but only, say 10, invest the remaining lump sum into a passive tracker and run your filters every quarter or so to see if a new candidate has surfaced; if so, sell a piece of the tracker to swap into your HYP.
I'm going to claim the above suggestion is not off-topic (for HYP): it's a practical issue for the lump sum HYP investor. Delving into which tracker, ETF etc, might be wandering a bit too far from HYP, so that part of the discussion might be better over on strategies?
For a good discussion of building the portfolio and managing decisions about whether to select a new candidate or to top up an existing one, I recommend reading the GDHYP threads, as per Gengulphus's post to you in the other thread: viewtopic.php?f=15&t=13813&p=167905&hilit=GDHYP#p167905
Anyhow, further discussion on HYP selection is probably best directed back at your other thread (viewtopic.php?f=15&t=13813&hilit=GDHYP
) This post was only because there may be some differences in how TATE is viewed for selection depending on whether you are a lump sum or a drip-feeding portfolio builder.