Nick Train: how investors should navigate Covid's winners and losers
The challenge facing investors, says fund manager Nick Train, is that this year’s winners have priced in a lot of optimism, but relief for depressed stocks may be some way off.
Nick Train is one of the UK’s most successful fund managers. His strategy boils down to buying good companies with high-quality brands, holding for the long run and – famously – spending as little time as possible worrying about the wider economy. However, the Covid-19 lockdown has been hard to ignore and in his commentary to the half-year results of the Lindsell Train investment trust (which has climbed by more than 600% over the past decade), he gives his views on prospects for his holdings in a post-coronavirus world.
Companies with a “digital growth story” have actively benefited from lockdown, notes Train, with payments processor PayPal and video-games giant Nintendo among the trust’s biggest gainers this year. However, the drinks industry – another of Train’s favoured sectors – has lagged. In other financial shocks “drinks companies have earned a reputation for being ‘defensive’”. But this time the likes of Heineken have suffered as pubs and restaurants have shut and people have socialised less.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Taxpayers urged to fight automated HMRC penalties as 20,000 win on appealHMRC loses more than 60% of cases when taxpayers appeal an automated penalty it has imposed, new figures show.
-
More than five million taxpayers overpay with wrong tax codes – how to check yours is rightHMRC overcharged taxpayers £3.5 billion in income tax the latest data shows, with tax coding errors largely to blame. Accountants say it is “essential” people check their tax codes to avoid being hit with higher bills.
-
Profit from pest control with Rentokil InitialRentokil Initial is set for global expansion and offers strong sales growth
-
Three funds to buy for capital growth and global incomeOpinion Three investment trusts with potential for capital growth, selected by Adam Norris, co-portfolio manager of the CT Global Managed Portfolio Trust
-
Fine-art market sees buyers returnWealthy bidders returned to the fine-art market last summer, amid rising demand from younger buyers. What does this mean for 2026?
-
PayPoint: a promising stock for income-seekersPayPoint, a household name across Britain, is moving away from its traditional roots toward a digital future. Investors after a steady income should buy in
-
Investing in forestry: a tax-efficient way to grow your wealthRecord sums are pouring into forestry funds. It makes sense to join the rush, says David Prosser
-
The MoneyWeek investment trust portfolio – early 2026 updateThe MoneyWeek investment trust portfolio had a solid year in 2025. Scottish Mortgage and Law Debenture were the star performers, with very different strategies
-
Pundits had a bad 2025 – here's what it means for investorsThe pundits came in for many shocks in 2025, says Max King. Here is what they should learn from them
-
The MoneyWeek ETF portfolio – early 2026 updateThe MoneyWeek ETF portfolio had a solid year in 2025 and looks well placed for what the next 12 months may bring
