Finsbury Growth & Income: an excellent example of why you should let your winners run and run

Nick Train’s Finsbury Growth & Income Trust finds top stocks for the very, very long term, says Max King.

Bottles of alcoholic drinks
“If a company’s products taste good, buy the shares”
(Image credit: © Diageo)

When is it right to take a profit? The temptation to cash in lest the share price reverses is strong, but it conflicts with the age-old maxim of running your winners and cutting your losers.

Advisers and wealth managers often encourage profit-taking, as clients will hate the thought of profits disappearing much more than they relish the prospect of further gains. If the price goes on rising, the adviser was just being cautious; if it falls, they will look foolish and could be fired.

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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.