Stock market crash: How Nick Train and Terry Smith’s ideas are guiding my investments for the rest of 2020

Stock market crash: How Nick Train and Terry Smith’s ideas are guiding my investments for the rest of 2020

first_img Two of UK’s best known fund managers – Nick Train and Terry Smith – have more than one common aspect in their investing approach. Both believe in buying quality stocks and holding them for the long term. They also have a penchant for consumer goods. But the stand-out feature for me is the strong returns they have given investors. This needs to be underlined at a time when we are coming out of a stock market crash.Double-digit returns for these fundsNick Train is the co-owner of the investment management firm, Lindsell Train. The Lindsell Train UK equity fund returned 23% to investors in 2019, showing performance far in excess of the FTSE 100’s gains. And this is despite the fact that over 60% of the fund’s holdings are in FTSE 100 stocks as of June 2020, including stocks like Unilever, Diageo, and Burberry. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Terry Smith’s Fundsmith equity fund is more US-focused. It has relatively limited exposure to the UK stock market, at less than 15% of the total. But like the Lindsell Train UK equity fund, it too is concentrated on consumer goods. Consumer staples account for 30% of its portfolio and consumer discretionary make up another 5%. Last year, it had a return of 26%. Investing ideas after the stock market crashBoth funds have are also bent towards technology stocks, albeit less than towards consumer goods. In the case of the LT UK equity fund, some of its top 10 investments are in FTSE 100 technology companies like RELX and The Sage Group. For Fundsmith, technology accounts for 29% of its portfolio, with holdings of stocks like Microsoft and Facebook. These were good stocks at any time, but now after the stock market crash, holding both consumer staples and technology stocks is a particularly winning move. Defensives like these are advisable to hold during the recession, and going by at least some of these stocks’ recent performances, I think it’s a good idea for investors to consider them even now. FTSE 100 defensives shineUnilever, for instance, recently delivered an increase in earnings despite lacklustre sales. Others like Burberry are harder hit, because of the discretionary sector they operate in. The British luxury brand has also been hit by the dent to its China and Hong Kong markets. But, fundamentally, it’s a sound company. It’s a similar story for Diageo, making both of them good buys now. Further, technology stocks are good plays too, as evident from the recoveries seen in their share prices after the stock market crash.What I’d buyBased on the ideas of the two fund managers, I think at this time it would be good to look at other defensives. For instance, some healthcare stocks have done superbly well in the past few months. These include AstraZeneca, despite its meteoric earnings ratio. Pest control provider Rentokil Initial is another one. In sum, after the stock market crash, I think investing in safe stocks is a good idea. And these top fund managers show us that these can be good growth investments too.  I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Stock market crash: How Nick Train and Terry Smith’s ideas are guiding my investments for the rest of 2020 “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Manika Premsingh owns shares of AstraZeneca and Burberry. The Motley Fool UK owns shares of and has recommended Facebook and Microsoft. The Motley Fool UK has recommended Burberry, Diageo, RELX, Sage Group, and Unilever and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Manika Premsingh Manika Premsingh | Wednesday, 5th August, 2020 Image source: Getty Images Simply click below to discover how you can take advantage of this.last_img

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