Cody Lundin in his book '98.6 Degrees: The Art of Keeping Your Ass Alive!' uses this technique. The Ranger Rick survival necklace also does too.
I keep my knive, a mora, sparker, whistle and misc items on a 10 piece of parachute cord that I brade, it is not cut into sections. It is clunky but mostly it goes in a pack or pocket but can be versatile.
cheers