Anthony Bolton: my three secrets of successful investing

Anthony Bolton: my three secrets of successful investing

Mr Bolton said running a fund successfully was a team effort involving plenty of backup from his analysts.

Many fund managers say the same and it’s tempting to put it down to modesty or toeing the corporate line, perhaps with an eye to reassuring investors that the fund can maintain its performance if the top man leaves.

But the reason Mr Bolton gave for needing a team was deeper than that – and carries a lesson for private investors.

“I use my analysts to watch the fund’s existing holdings while I look for new opportunities,” he said. “It’s important to do both when you’re running a fund.”

Individual shareholders can’t employ a team of analysts, of course. But they can make sure that they keep monitoring their existing holdings at the same time as looking out for new bargains.

Fundamentals and market sentiment are both important

Mr Bolton said two things were important when choosing which shares to buy: the fundamentals of the company and stock market sentiment. “Ideally you get both right,” he said. “I would avoid buying even a good company when sentiment is poor.”

But he added that timing the market was difficult, as his Fidelity China Special Situations fund showed. It lost about 30pc of its value in its first 18 months, before recovering all its losses and more recently. “Markets always overreact,” Mr Bolton added.

“It has taken three years for the fund to come right.”

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