Nick Train has been the biggest inspiration to me ever since I started my investing journey. One of his funds (CF Lindsell Train UK Equity fund) is the only active fund that I have in my portfolio.
Here’s a video where he talks extensively about the way he invests.
Some of the highlights:
1/ Longevity: Nick talks about longevity like Warren talks about floats and moats. He said that out of thousand of globally public companies he and his team only found 175 companies that meet this criteria. The most recent name he added to the portfolio was Remy Cointreau – the owner of Remy Martin, a brand that has existed for about 293 years since its founding in 1723.
2/ Portfolio turnover: Nick’s turnover of stocks is an underwhelming 2% which is equivalent to a 50-year holding period.
3/ Unique content: Juventus and WWE (fun fact: my grandma loves Samoa Joe!) are the two businesses possessing unique content that Nick has been owning for long
4/ Eat your own cooking: every great investor runs other people money like they run their own. Nick and his co managers own the majority of Lindsell Train – the investment firm where he houses all of his funds
5/ Reading: “mate, your portfolio turnover is 2%. Wtf do you do at work?” is what the interviewer was trying to ask Nick. And he replied that he and his team read a heck load of things. They even have their own library at their work place.
Warren has been the key source of inspiration to Nick. Both have been generous in sharing their views on investing and I deeply appreciate their lessons.
They are invaluable to me as they should also be to you.
Shall my gf ask me what I will be doing upon my post financial-independence life, to her I will say: “I read”.