Simon Thompson 

On the engineering beat

Simon Thompson

Simon Thompson

One of the perennial conundrums facing investors is when to take profits on a winning shareholding. My policy is to always run profits until the rationale behind the original investment thesis no longer holds. However, I am cognisant of the fact that risk management plays an important part in running any portfolio and if you find yourself sitting on huge gains on any single holding then top-slicing to diversify risk is a sensible strategy. That way you can benefit from further upside on the balance of a winning holding, while at the same time crystallising gains to protect erosion of paper gains in the event that investor sentiment turns.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now