Investor Views: Taking a Warren Buffett Approach

Retired investor Malcolm Wright doesn’t need an income from his equity portfolio. He is still invested for growth, but is considering his options

Emma Simon 6 July, 2016 | 11:40AM

Malcolm Wright, a retired GP, has built up a significant portfolio of investment trusts and direct shareholdings over more than 30 years using tax-free wrappers; ISAs and SIPPs. But he says the most difficult bit of investing is knowing when to sell.

“I am a very bad seller. I’ve held shares that have increased significantly in value and have failed to take profits. But I’ve also failed to sell shares that appear to be in terminal decline.”

As he points out, while a certain amount of volatility is to be expected, there are occasions when a price decline is more marked. Wright admits that if he has failed to sell a holding at the optimum time he has invariably kept this stock in his portfolio – even if it might be worth a fraction of what he paid for it.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC103.14 GBX-0.75
Finsbury Growth & Income Ord810.00 GBX0.87
Lloyds Banking Group PLC28.12 GBX-0.95
Scottish American Ord401.00 GBX0.50
Witan Ord168.80 GBX0.84

About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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