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“ As an investor , you have to develop your own compass and have your sights very firmly set on the horizon you ’ re trying to get to ”
sucked in . Our approach is always to try to be detached from it . “ That means not being fazed by a 50 per cent downward move in the share price . That doesn ’ t mean you ’ re wrong or the whole business is changing . It ’ s just share prices are being buffeted by individual sellers .” Of course , the market crash seen in March didn ’ t affect all companies equally and while healthcare and tech stocks surged , many of their consumer-facing counterparts plummeted . Yet even though Vaughan owns a number of cyclical stocks , which tend to outperform when the economy is booming and crash during a recession , he resisted the temptation to cut his losses , saying “ it would have been a dumb time to sell ”. “ One of our big objectives is to obtain multi-bagger investment returns and you don ’ t get those by switching in and out ,” he adds . “ That doesn ’ t mean just sticking your head in the sand . Obviously , we check the way the world is changing isn ’ t negatively impacting our investments . You need to be following the news and how the
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