What about Warren Buffett-style trusts?
A letter from a reader raises a question about comparisons with the Sage of Omaha's approach.
12th April 2019 15:21
by Kyle Caldwell from interactive investor
A letter from a reader raises an interesting question about comparisons with the Sage of Omaha's approach.
There have been several interesting articles recently regarding funds that employ the Warren Buffett methodology to good effect, but there is seldom any mention of investment trusts that follow the same path. It appears that Finsbury Growth and Income (LSE:FGT), managed by Nick Train, might possibly fit this mould, but beyond that there seems to be little information available.Â
As now seems to be a time to play the investment long game to ride out market uncertainty, it would be very helpful to see a comparative list of investment trusts that have a history of successfully employing the great man's techniques. I'm sure many of your other regular readers would also be interested.Â
John W, by email.
Money Observer replies: We agree the standout investment trust that adopts the principles of Warren Buffett is Finsbury Growth and Income, managed by Nick Train. Both Train and Buffett look for high-quality companies armed with some sort of structural advantage that will enable them to keep competitors at bay. They both seldom trade, and instead buy and hold for the long term.
A research report by Kepler Trust Intelligence last November aimed to identify the investment trust managers that follow an investment approach close to Buffett's. Kepler concluded the two managers most deserving of the British Buffett epithet are Nick Train (for Finsbury Growth and Income) and Alexander Darwall (for Jupiter European Opportunities (LSE:JEO)). Several other trusts scored well, but have had recent changes in management: BlackRock Throgmorton Trust (LSE:THRG) (Mike Prentis stepped down in December 2017), Baillie Gifford Japan (LSE:BGFD) (Sarah Whitley retired last year) and Henderson EuroTrust (LSE:HNE) (Tim Stevenson is retiring).
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.