#51 The Franchise Fan - Nick Train on Durable Franchises and 20‑Year Holding Periods
About this episode
Nick Train discusses his investment philosophy focused on durable franchises and the importance of a long-term holding period.
Nick Train is a seriously thoughtful growth investor with a highly impressive 40 year track record. He invests in eternal franchises and takes a 20 year view. He says his ideal holding period is forever. He was early to recognise that high quality consumer brands were great investments and accordingly his funds significantly outperformed their benchmarks. More recently, the last five years have been less kind and performance has lagged somewhat with weak performance from some of his biggest holdings, notably Diageo, which is down almost 50% from its peak, in a market which has gone up. Nick has taken this performance to heart and he explains why he has stuck with Diageo and continues to believe it’s as “forever” stock. He also explains his change in strategy to favouring 21st century asset light digital data plays which he sees as even more valuable than his old favourite consumer brands. He is particularly impressed with Rightmove, which I have described in the past as akin to a UK Zillow, and explains his rationale, as well as his enthusiasm for LSEG, RELX and Unilever. Behind the Balance Sheet is a forensic accounting and fundamental investing podcast for serious investors…
People in this episode
Host: Stephen Clapham
Guest: Nick Train
Topics covered
- growth investing
- durable franchises
- long-term investment strategies
- consumer brands
- digital data plays
- portfolio management
Keywords
- franchises
- investment strategy
- consumer brands
- portfolio performance
- digital assets
- long-term holding
Mentioned in this episode
Organizations: Diageo, Rightmove, LSEG, RELX, Unilever
Books & works: Behind the Balance Sheet
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