Investing tips, strategy, and stock picks from fund manager David Dudding - Business Insider

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A fund manager beating 90% of his rivals told us why he actively avoids companies with giant profit margins — and shares 5 stocks he thinks will keep winning for years

Columbia Threadneedle's David Dudding is compiling a strong track record at his global and European funds.

That's helped his stocks during economic downturns, and he spoke with Business Insider about five examples.One of the best ways to get a struggling stock to turn around is a big improvement in its profitability. After all, one reason investors love tech stocks is that they're remarkably efficient at making tons of money.David Dudding of Columbia Threadneedle Investments

"We don't want to see margins sort of going through the roof, because maybe that's an example of companies taking too much profit in the short term," he said. "What we like are companies [where] maybe the margins go up a little bit every year, but not as much as they could do." "We quite like looking at things like R&D as a percentage of sales or advertising and promotion as a percentage of sales," he told Business Insider in an exclusive interview. , a global portfolio he's managed for almost six years. An investor who put money into the fund when Dudding started in January 2015 would have more than doubled their money today, enjoying a return of 116.8% as of Friday according to Morningstar.

 

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