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.

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