The best firms to own during market turmoil

A professional investor tells us where he’d put his money. This week: Will Dobbs of Charles Stanley picks firms with predictable returns in high-growth industries.

In an uncertain world, consistency pays off. Our approach is to seek companies with predictable returns in high-growth industries, as this is often the best way to compound growth over the long term and take comfort in times of market stress. We all know markets are volatile, so understanding the businesses in which we invest and believing the long-term story is important. We highlight firms with above-average growth prospects, sustainable and diversified earnings, high returns on capital and not too much cyclicality.

Investors have a lot to contend with at the moment valuations in many cases are approaching all-time highs, interest rates are generally rising (albeit slowly), we are potentially entering a tit-for-tat trade war, and every week we seem to hear about another sector that is being destroyed by Amazon (this week it's high-street retail).

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Will Dobbs co-manages the Charles Stanley UK Equity fund.