Three British brands set for decades of growth

Professional investor Nick Train picks three British brands that have ample scope for strong growth all round the world for many decades to come.

A professional investor tells us where he'd put his money. This week: Nick Train, portfolio manager of the Finsbury Growth & Income Trust, outlines his strategy.

I recently read a thrilling book about investment called 100 to 1 in the Stock Market by US stockbroker Thomas Phelps. It's a classic, first published in 1972. Here are three quotes from it that neatly sum up Phelps's message and go a long way towards introducing our approach too.

"It would be hard to find a worse slogan than You'll never go broke taking a profit.'"

"Every sale is a confession of error."

"In Alice in Wonderland one had to run fast in order to stand still. In the stockmarket, the evidence suggests, one who buys right must stand still in order to run fast."

Profit from doing nothing

It's thrilling because Phelps lists the surprising number of US-quoted companies that have gone up in value 100-fold, admittedly over long periods. Think about that: up 100-fold turns £10,000 into £1,000,000.

"In the stockmarketinvestors must stand still in order to run fast"

Finding long-term success stories

Consider, for instance, Burberry (LSE: BRBY); Guinness, Johnnie Walker, Tanqueray, the drinks owned by Diageo (LSE: DGE); and Manchester United (NYSE: MANU). All these brands are more than a century old, but it still seems to us that they're really only just getting started in fulfilling their global potential. If the past is any guide, their growth will drive tremendous returns for patient investors.

Recommended

Beyond US tech stocks: three global stars to buy now
Share tips

Beyond US tech stocks: three global stars to buy now

There is much to like about the US tech giants, says professional investor Alec Cutler of Orbis Investments highlights. But there are many other excel…
1 May 2021
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Feb 2021
How to invest in biotechnology: the healthcare sector’s high-growth area
Biotech stocks

How to invest in biotechnology: the healthcare sector’s high-growth area

Dr Mike Tubbs provides an overview of this thriving industry, whose latest triumphs include the Covid-19 vaccines. He examines the best investment str…
14 May 2021
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 May 2021

Most Popular

How will Joe Biden’s capital gains tax rise affect crypto prices?
Bitcoin & crypto

How will Joe Biden’s capital gains tax rise affect crypto prices?

The US president wants to increase capital gains tax – and that’s going to hit a lot of American cryptocurrency speculators. Saloni Sardana looks at h…
14 May 2021
Inheritance tax planning: the rules around gifting
Inheritance tax

Inheritance tax planning: the rules around gifting

There are plenty of legal ways to minimise an inheritance tax bill. Perhaps the simplest is to give away assets to reduce the size of your estate. Dav…
11 May 2021
Are we nearing the end of the negative bond yield era?
Government bonds

Are we nearing the end of the negative bond yield era?

As inflation gets going, the era of the negative bond yield – that investors have to pay governments for the privilege of lending them money – might b…
14 May 2021