Three long-term, “old economy” winners forgotten in the growth-stock frenzy

Professional investor John Bennett of the Henderson European Focus Trust, picks three of his favourite “old economy” stocks that should provide surprises to the upside.

Much of today’s investment landscape is populated by stocks offering seemingly “unique” growth opportunities, tapping into themes such as disruption, asset-light models, renewable-energy sources and post-pandemic consumer behaviour. Yet, as is so often the case, a good number of such stocks will quickly fizzle out, inflicting painful losses on investors.

Such is the nature of the investment world that many practitioners fall into the trap of perceiving binary outcomes: sure-fire winners versus total duds. Today’s version of this sees terrific benefit of the doubt – and capital deployment to match – afforded to sectors such as food delivery, sustainable energy and digital retail. The rush into such “opportunities” has accelerated as the phenomenon of environmental and social governance (ESG) investing has emerged.

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John Bennett is manager of the Henderson European Focus Trust