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.'"
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
"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.
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.
Nick Train is a highly recognised fund manager, currently the co-founder of Lindsell Train Limited and their chairman. He is the portfolio manager for UK equity portfolios and Nick has over 40 years experience in investment management. Nick’s other roles include 17 years at GT Management where he worked his way up to a Chief Investment Officer for Pan-Europe. Nick graduated from the University of Oxford with a degree in modern history. Nick contributes to MoneyWeek’s share tips.
Nationwide: UK house prices creep up by 0.2% - are we heading for a rebound?
Nationwide’s latest house price index shows property prices inched up by 0.2% as demand warms up - will this trend go into 2024?
By Kalpana Fitzpatrick Published
December 2023 NS&I Premium Bond winners revealed - have you won the jackpot?
Two Premium Bond holders are now millionaires as NS&I reveals December winners. Find out if you’re one of them
By Vaishali Varu Published