Three stocks to give your profits a far-from-cosmetic boost

Professional investor Michael Lindsell of Lindsell Train selects three cosmetics firms that are likely to be profitable in 20 years’ time.

Each week, a professional investor tells us where he'd put his money. This week: Michael Lindsell of Lindsell Train selects three cosmetics firms that are likely to be profitable in 20 years' time.

One of Lindsell Train's founding principles is to run client money as we would run our own which means to protect and, if possible, grow capital. The best chance of achieving this is by investing only in those companies that we judge to be exceptional. For us, exceptional means that they are likely to be profitably in business in 20 years' time. Because there are only a limited number of companies that meet our criteria, we run concentrated portfolios, with 20-30 holdings, and we rarely make changes. Here we look at three exceptional Japanese cosmetics companies. We like cosmetics as a business raw materials are cheap, yet end products are highly branded, aspirational items.

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Michael Lindsell is manager of the Lindsell Train Japanese Equity Fund.