Fund manager Nick Train will soon be flush with cash, and he’s been scouring the FTSE 100 and FTSE 250 for stocks to buy.
This comes after the sale of two companies — Intertek and Schroders — that were holdings inside his Finsbury Growth & Income Trust. What will he be buying with the cash when it arrives?
Well, we already know Finsbury has been topping up existing favourites like RELX, Sage, and London Stock Exchange Group. These data/software names have come under serious pressure over the past 18 months due to concerns that AI might one day weaken their businesses.
But one stock that caused me to raise an eyebrow was Games Workshop (LSE:GAW). The trust says it will aggressively build out its position in the Warhammer owner, which it initiated in 2025.
I’m already a Games Workshop shareholder. Is this a signal for me to start loading up too?
The quality is not in doubt
Look up a table of top-performing UK stocks, and nothing much comes close to Games Workshop over the long term. It’s up by a mind-boggling 4,300% in the past decade, with surging dividends on top.
This incredible run saw the company join the FTSE 100 in December 2024. Since then, the stock has powered more than 50% higher, giving it a price-to-earnings (P/E) ratio of almost 33.
In some ways, I find Train’s move slightly baffling. Because at this valuation, there can be no earnings slipups or growth hiccups. Yet with the Middle East conflict fanning inflation, cash-strapped consumers could be forced to cut back on pricey armies of Citadel miniatures from Games Workshop.
That’s not to say the company doesn’t tick all the boxes in terms of quality. It has valuable intellectual property, a hard-to-replicate franchise, incredibly fat profit margins, super-high returns on capital, and its balance sheet is clean as a whistle.
However, I think piling into this priced-for-perfection stock at this point could be a bit risky. It’s not one I’m looking to add to.
Another idea
Turning to one that I did buy quite recently, I want to highlight Applied Nutrition (LSE:APN). Since I invested in April, this FTSE 250 stock has jumped 55%.
Applied Nutrition formulates premium sports nutrition products, including protein, pre-workout drinks, and vitamin capsules.
Today, over 90% of sales are business-to-business, with an impressive roster of retail partners that includes Tesco, Asda, Sainsbury’s, Walmart, Superdrug, Boots, and B&M.
With such blue-chip supply agreements in place, the company is growing impressively, with revenue tipped to rise 39% in FY26 (ending July) to around £149m. And City analysts see earnings per share surging 52%.
Looking ahead though, the Iran war could prevent products getting to Middle East customers. This is a risk to growth.
That said, the war has been going on for months already, and Applied Nutrition has still served up multiple upgrades to its FY26 guidance. So what’s the secret sauce?
Speaking as a gym-going customer, I appreciate the product quality here. There’s a huge opportunity for a trusted brand to consolidate the fragmented £200bn+ global sports nutrition, health, and wellness market.
With Applied Nutrition’s market cap at £826m, on annual sales of £150m, I’m excited about the long-term growth potential here. Trading at 24 times forward earnings, I think the stock’s worth mulling over.
Should you invest £5,000 in Games Workshop Group Plc right now?
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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Games Workshop Group Plc made the list?
Ben McPoland owns shares in Applied Nutrition, Games Workshop, and Sage.
