Having summarised the portfolios’ 2019 performance, last month’s piece (‘Another rewarding year’, 10 January 2020) briefly reminded readers of the investment principles guiding the portfolios before explaining in some detail why economic and market forecasts are best avoided, as they simply contribute to market ‘noise’. The piece then turned to the market opportunities that lie ahead and the logic for holding the various asset classes employed by the portfolios.
Subsequent feedback suggests a fuller explanation as to some of those investment principles and nuances favoured by the portfolios would also be appreciated. In suggesting investors should retain faith in the compounding power of well-chosen equities over the long term, their potential is best harnessed if coupled with tried-and-tested investment disciplines.
While never complacent, and while accepting there will be disappointments en route, such a combination usually leads to superior portfolio returns over the long term. And while not exhaustive, the combination has certainly guided the nine real investment trust portfolios managed in real time on the website www.johnbaronportfolios.co.uk – including the two regularly covered in this monthly column – towards the good returns achieved relative to benchmarks.