13 Questions for Finsbury G&I Trust’s Madeline Wright

Which
Sector
Shows
the
Biggest
Promise
in
2023?

This
is
shamelessly
dodging
the
very
first
question,
but
as
we’re
strictly
bottom-up
investors
seeking
to
buy
exceptional
companies
to
hold
for
the
long
term,
we
don’t
think
about
the
investment
challenge
in
this
way.
We
wouldn’t
ever
make
changes
to
our
portfolios
based
on
short-term
shifts
within
sectors.

What’s
the
Biggest
Economic
Risk
Today?

I’m
certainly
no
macro
expert,
so
I’m
not
sure
if
I
feel
confident
to
name
a
single
biggest
economic
risk,
but
inflation
is
definitely
a
consideration
both
on
a
short-
and
long-term
basis.
Consider
that
in
the
50
years
between
1972
and
2022,
the
UK
has
seen
a
fourteen-fold
rise
in
prices.
We
pay
close
attention
to
our
portfolio
companies’
ability
to
offer
inflation
protection
over
the
long
term
plus
the
possibility
of
real
growth
on
top:
Burberry
is
a
great
example
as
its
iconic
trench
coat
has
not
just
endured
from
1916
to
today
but
increased
in
price
from
3
guineas
to
a
whopping
£1,790.

Describe
Your
Investment
Strategy

We
do
our
best
to
build
a
concentrated
portfolio
of
truly
exceptional
companies
–
the
kind
that
have
endured
and
improved
over
multiple
decades
and
often
centuries
–
and
then
hang
onto
them
for
as
long
as
possible.
We
look
for
ownership
of
unique
brands,
intellectual
property,
products
and
services
that
are
hard
for
their
customers
and
clients
to
replace
or
move
away
from.
These
kinds
of
companies
tend
to
be
highly
cash-generative
and
with
the
ability
to
compound
returns
attractively
over
time.
There
aren’t
many
of
these
companies
out
there,
so
naturally
our
portfolios
are
concentrated.
But
we
view
the
concentration
as
an
advantage
–
our
conception
of
risk
is
‘permanent
loss
of
invested
capital’
and
we
would
much
prefer
to
invest
in
a
handful
of
excellent
companies
than
a
lot
of
mediocre
ones.

Which
Investor
Do
You
Admire?

Is
it
too
much
of
a
cliché
to
say
Warren
Buffett?
Probably,
but
that’s
my
answer
anyway!
I
really
admire
his
ability
to
identify
genuinely
exceptional
companies
and
then
stay
invested
forever.
It
sounds
easy
to
do,
but
in
practice
requires
a
great
deal
of
discipline.

Name
Your
Favourite
‘Forever
Stock’

Given
our
aim
is
to
build
and
maintain
portfolios
of
nothing
but
‘forever
stocks’,
I’ve
got
plenty
to
choose
from.
But
if
I
had
to
pick
one,
I
think
Diageo
is
a
great
example
of
the
kind
of
company
you’d
be
pleased
to
hold
for
your
great-grandchildren
–
it’s
one
of
the
largest
spirits
companies
in
the
world
with
a
portfolio
of
impossible
to
replicate,
pedigreed
brands
that
are
increasingly
benefiting
from
premiumisation.
Despite
already
being
the
world’s
#1
Scotch
whisky,
Diageo’s
largest
brand
Johnnie
Walker
is
showing
no
sign
of
slowing
down
–
in
2022
it
belied
its
155
years
with
sales
growth
of
34%,
disproportionately
skewed
to
the
more
premium
Blue
and
Black
Labels.
To
us
Johnnie
Walker
is
still
a
young
brand,
and
we
look
forward
to
many
more
years
of
growth.
It
is
no
surprise
to
us
that
the
9th
and
10th
biggest
shareholders
in
Diageo
(after
us
at
number
8)
are
Bill
Gates’
foundation
and
Berkshire
Hathaway.

What
Would
You
Never
Invest
In? 

Capital
intensive
companies,
producers
of
commodity
products,
and
anything
highly
exposed
to
the
risk
of
regulation
–
for
example,
tobacco.

Growth
or
Value?

The
companies
we’re
looking
for
tend
to
combine
both
qualities.
Particularly
on
a
multi-decade
time
horizon
which
gives
us
plenty
of
time
to
capture
the
kinds
of
exceptional
returns
on
capital
that
other
investors
with
shorter
time
horizons
often
undervalue.

House
or
Pension?

I
view
my
house
as
a
home
and
not
an
‘asset’.
My
pension
is
the
investment.

Crypto:
Brilliant
or
Bad?

As
a
speculative
asset
class
which
is
likely
to
find
itself
at
the
mercy
of
more
and
more
regulation
over
time,
it’s
not
one
for
us.
Although,
as
with
all
new
technologies,
we
watch
it
closely
to
see
how
it
impacts
existing
industries
and
companies.

What
Can
be
Done
to
Improve
Diversity
in
Fund
Management?

Increasing
diversity
and
broadening
the
number
and
range
of
perspectives
within
fund
management
is
critical
for
future-proofing
the
industry.
More
work
needs
to
be
done
to
educate
and
attract
bright
young
people
from
a
wider
range
of
backgrounds
at
a
much
earlier
stage,
e.g.
internships,
school
and
university
events
and
collaborations
with
upward
mobility
programmes
(we’ve
had
a
great
experience
working
with
UpReach!).

Have
you
Ever
Engaged
with
a
Company
and
Been
Particularly
Proud
(or
Disappointed)
in
the
Outcome?

Given
we
invest
in
just
70
companies
in
total
across
all
four
of
our
strategies
and
hold
for
the
long
term,
we
can
engage
in
a
meaningful
way.
So
as
investors
in
several
FMCG
and
luxury
fashion
companies,
I’m
very
proud
that
Lindsell
Train
is
a
signatory
of
the
modern
slavery
abolition
initiative
Find
It,
Fix
It,
Prevent
It.
We
are
particularly
alert
to
modern
slavery
in
the
supply
chain
and
the
business
risks
it
poses,
so
being
part
of
this
allows
us
to
collaborate
for
change
by
encouraging
all
our
companies
to
proactively
identify
and
address
any
incidences
of
modern
slavery
in
their
supply
chains.

What’s
the
Best
Advice
You’ve
Ever
Been
Given?

“Never
forget
that
you
are
looking
after
people’s
savings.”
Nick
Train
said
that
to
me
in
my
very
first
week
at
Lindsell
Train
and
I
have
never
forgotten
it.
Day
to
day,
we
deal
with
very
large
amounts
of
money.
But
–
without
allowing
the
responsibility
to
become
paralysing
–
I
have
always
found
it
focuses
the
mind
to
remember
that
no
amount
is
trivial,
and
all
decisions
affect
real
people,
the
holders
of
the
fund.

What
Would
You
be
if
You
Weren’t
a
Fund
Manager?

A
self-employed
plumber.
I
really
like
manual
technical
challenges
and
problem-solving,
and
I
value
the
ability
to
direct
my
own
schedule.

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