

#51 The Franchise Fan
46 snips Sep 18, 2025
Nick Train, a long-term growth investor and co-founder of Lindsell Train, shares his insights from four decades of expertise. He discusses his philosophy of 'forever' holdings, emphasizing why he remains committed to Diageo despite recent downturns. Nick highlights the value of 21st-century asset-light digital platforms, particularly praising Rightmove for its exceptional economics. He also reveals his shift in strategy toward digital franchises and the importance of a concentrated investment portfolio backed by thorough research.
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Forever-Hold Mindset
- Nick Train prefers concentrated, long-term holdings and often aims to hold stocks "forever."
- He believes visceral conviction beyond intellectual analysis is crucial to endure downturns.
Inspired By A No-Trade Colleague
- Train credits Alex Dundas at GT Management for inspiring a buy-and-hold approach after seeing a no-trade, high-performing Japanese fund.
- That experience committed him to seeking similarly concentrated, long-duration investments.
Different Valuation For Digital Franchises
- Train now values capital-light digital franchises differently and is willing to pay higher multiples for them.
- He suggests some digital businesses may warrant earnings yields as low as 2% (50x earnings).