In November 2021,
pyad reported HYP1 as follows:
https://www.lemonfool.co.uk/viewtopic.p ... 21#p458793
From this we can extract the following:
Nov-21 | Value | Income | % of Total Income
PSN | 28,793.00 | 3,223.85 | 28.43%
RIO | 23,629.00 | 3,581.31 | 31.59%
| | |
Total | 52,422.00 | 6,805.16 | 60.02%
In November 2022,
pyad reported HYP1 as follows:
https://www.lemonfool.co.uk/viewtopic.php?f=15&t=36806
From this we can extract the following:
Nov-22 | Value | Income | % of Total Income
PSN | 14,322.00 | 2,483.95 | 22.33%
RIO | 27,846.00 | 2,967.32 | 26.68%
| | |
Total | 42,168.00 | 5,451.27 | 49.01%
Those who suggest re-balancing are of course rather slow to come up with any such strategy, I mean they are hardly solution-oriented persons but, assuming that each of these overweight 2021 holdings was reduced such that the % age of portfolio income was no more than 10%, the income from each of these two holdings during 2022, would have been reduced by two thirds.
The capital released in November 2021 would have been £34,944.51 and, assuming that it could have been invested at a yield of 6.00%, the income from this can be calculated as £2,096.67.
From this we can calculate the consequences of such an action as follows:
Nov-22 | Value | Income
PSN | 4,774.00 | 827.98
RIO | 9,282.00 | 989.11
NEW | 34,944.51 | 2,096.67
| |
Total | 49,000.51 | 3,913.76
A reduction in income from what actually happened of 1,537.51 - a decrease of 13.56%!
Dod1010 and
Itsallaguess would no doubt point to the enhanced income diversification and claim a successful year. However, anyone measuring the success or otherwise of HYP1 based on its sole remit of achieving a high and increasing income, would correctly point to the income reduction as a failure!
Enjoy!
Ian