The Enduring Wisdom of Lindsell Train

The Enduring Wisdom of Lindsell Train

An RNS passed by without much comment last week. It contained some gems of wisdom which I believe are worth repeating.

The RNS in question is the Half-Year Report from the Lindsell Train Investment Trust (“the trust”), managed by Lindsell Train Limited (LTL).

LTL is an unquoted company managing a range of funds in addition to the trust. Michael Lindsell and Nick Train are joint founders and portfolio managers at LTL.

The quirky thing about the trust is that it owns 24% of its own investment manager, LTL. So even though LTL is unquoted, you can own up to 24% of it through the trust.

LTL’s strong reputation and the track record of the trust have the consequence that the trust tends to trade at a good premium to its official net asset value. For example:

  • latest share price (4 Nov 2018): £1215
  • net asset value (31 Oct 2018): £827.27
  • premium to NAV: 47%

NAV performance over the past five years is shown below:

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