Interactive Investor

Nick Train on share tips and Buffett in The Richard Hunter Interview

19th January 2021 08:30

Richard Hunter from interactive investor

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The star fund manager Nick Train talks to us about his Finsbury Growth & Income Trust (LSE:FGT) and answers questions from interactive investor customers.

Highlights:

04:33 – “A motivation to carry on is just that test of ‘can you do better than the market?’. There are lots of very smart people trying to succeed investing in UK equities, and it’s stimulating to see how it ends up for you at any given period.”
 
06:38 – “The two dominating, differentiating aspects of what we’ve done, both of which are unapologetically copied from Warren Buffett’s advice, are one: run concentrated portfolios. You look at Finsbury, that is a concentrated portfolio. And the other Buffett-derived behaviour is to discipline ourselves to transact as rarely as we can; to keep portfolio turnover as low as we possibly can. That is emotionally difficult, psychologically difficult, intellectually difficult and, sometimes, it’s just plain wrong.”
 
17:18 – “30 years ago I took a deliberate and conscious decision to always be bullish and optimistic about equities. And I’ve stuck to that. Sometimes it’s made me look and feel stupid but, over time, having that optimistic bias has been an important contributor to our long-term returns. At least you’re invested when things do go up, because you’re never going to time it.” 
 
27:08 – “The idea of aligning your capital, your savings, with the sort of predictability of those brands within Diageo makes sense to me. The past, in a sense, is irrelevant … but there is information, it seems to us, in the wonderful, long-term returns that can be earned by owning pieces of these wonderfully durable brands over time.”
 
32:23 – interactive investor customer questions

  • Listen to more interactive investor podcasts featuring our own investment experts, fund managers and industry commentators by visiting our podcast page.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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