Three British brands set for decades of growth
Professional investor Nick Train picks three British brands that have ample scope for strong growth all round the world for many decades to come.
A professional investor tells us where he'd put his money. This week: Nick Train, portfolio manager of the Finsbury Growth & Income Trust, outlines his strategy.
I recently read a thrilling book about investment called 100 to 1 in the Stock Market by US stockbroker Thomas Phelps. It's a classic, first published in 1972. Here are three quotes from it that neatly sum up Phelps's message and go a long way towards introducing our approach too.
"It would be hard to find a worse slogan than You'll never go broke taking a profit.'"
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"Every sale is a confession of error."
"In Alice in Wonderland one had to run fast in order to stand still. In the stockmarket, the evidence suggests, one who buys right must stand still in order to run fast."
Profit from doing nothing
It's thrilling because Phelps lists the surprising number of US-quoted companies that have gone up in value 100-fold, admittedly over long periods. Think about that: up 100-fold turns £10,000 into £1,000,000.
Finding long-term success stories
Consider, for instance, Burberry (LSE: BRBY); Guinness, Johnnie Walker, Tanqueray, the drinks owned by Diageo (LSE: DGE); and Manchester United (NYSE: MANU). All these brands are more than a century old, but it still seems to us that they're really only just getting started in fulfilling their global potential. If the past is any guide, their growth will drive tremendous returns for patient investors.
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Nick Train co-founded Lindsell Train Limited in 2000. He is the portfolio manager for UK equity portfolios and jointly manages Global portfolios.
Nick has over 40 years’ experience in Investment Management. Before founding Lindsell Train, he was Head of Global Equities at M&G Investment Management, having joined there in 1998 as a Director. Previously he spent 17 years (1981 – 1998) at GT Management which he left soon after its acquisition by Invesco. At his resignation, he was a Director of GT Management (London), Investment Director of GT Unit Managers and Chief Investment Officer for Pan-Europe.
Nick has a BA Honours Degree in Modern History from Queen’s College, Oxford.
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