Recovery stocks – boost your wealth and your ego

Buying out-of-favour, beaten-down stocks may require impetuousness bordering on recklessness, says Max King – but buying recovery stocks can be mighty satisfying when it pays off.

Buying out-of-favour, beaten-down stocks may require impetuousness bordering on recklessness, says Max King but it can be mighty satisfying when it pays off.

There are few investments more satisfying than buying out-of-favour shares and then seeing them multiply in value. The satisfaction comes not just from the profit made but from being right when nearly everyone else is wrong. Naturally, investors remember their winners more easily than their losers but, until the new millennium at least, the profits from the winners swamped the losses from the disasters.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.