Lindsell Train Investment Share Discussion Threads

[davebowler] 23/8/2016 08:15

Crazy premium to NAV. Look at LWDB as a parallel but its on a discount of 11% including its in-house business.

[spectoacc] 22/8/2016 11:05

I see they rather sensibly changed the management fee as being calculated on "the lower of NAV or shareprice". Personally I'd like to see that as a law for all ITs. Some with dubious NAVs (eg smallcap funds, valuing holdings at bid that they wouldn't even be able to flog at a 50% discount) can end up getting a management fee on twice the shareprice.

But - isn't the LTI premium now out of control? I'm not a fan of "gurus", be it Anthony Bolton (), Neil Woodford (small pharma fiascos) or Nick Train, who like Terry Smith has been brilliantly right for owning the bond proxy "brand" cos, but won't necessarily continue to be brilliantly right.

According to HL the premium is 57%; I fail to see how a 33% holding in two-man band Lindsell Train can justify that. Nor can holding a handful of stocks I could easily buy myself, that seem as likely to underperform from here as outperform - DGE, ULVR, LSE, BAG, Nintendo, RELX, Heineken, Mondelez.

[anumidium] 14/7/2016 22:51

Looking good lately

[topvest] 06/6/2016 09:37

Sold a third of mine this morning. Rest are effectively £nil cost. Valuation seems a tad racy so taking the opportunity to recycle some of my holding into a better value investment trusts. Won't sell the rest though.

[topvest] 24/6/2014 07:17

Good results again. Chairman has warned stakeholders about buying the shares at a premium..unusual behaviour for a Chairman, but honourable all the same.

"I reiterate the cautionary comments I made to shareholders in last year's annual report, first about the risk to the NAV from a sharp fall in markets given the size of holding in LTL and second to caution potential new shareholders to think carefully before buying the Company's shares at a premium to NAV, which as I write is at 6%. This has fallen from higher levels late in 2013 but it is worth pointing out that if the investment in LTL continues to grow in importance above 25% of the NAV the share price of the Company will increasingly be determined by investors views on the value of that asset and less by conventional reference to the NAV."

[investor_tp] 28/11/2012 13:02

The spread is also rather high.

[topvest] 28/11/2012 10:28

You don't often see a Board saying the premium is too high...very unusual!

The first six months of the Company's financial year continued as last year's ended, with the Company's net asset value rising more than the benchmark and world equity markets. The NAV was up 7.8%, the benchmark 1.9% and world markets measured by the MSCI World index in Sterling up 0.6%. What has changed more is the share price. It was up 28.4% and at the end of September was trading at a premium to NAV of 21%. The Manager wrote about the premium in its September monthly update. The Board would like to support and reiterate some of the comments, and in particular would caution new investors buying shares at a heightened premium to NAV. In time the premium may contract and there is a risk that the shares will trade at a discount in the future. Should that occur at a time when markets are weak and the NAV is falling the loss of value for investors buying at a significant premium could be material. Also, it would be wrong for existing investors to celebrate a high price that results from a large premium. The Manager's annual management and performance fees are calculated on the market capitalisation of the Company not the NAV. Calculating the fee on the market capitalisation was designed to align the Manager's interests with shareholders, recognising that investment trusts have generally traded at discounts. This works to shareholders' advantage when discounts exist but that advantage is reversed when a premium prevails.

Aside from communicating our concern and reiterating that the price the Board ascribes to its holding in Lindsell Train Limited is realistic and not undervalued (as some shareholders have suggested), there is little the Board can do to help resolve the situation other than issuing new shares. In previous statements, I have commented that the strong growth in LTL's business is much to be welcomed as is the greater strength and depth which the business is developing, but LTL remains significantly dependent on its two original founders and on continued good investment performance. The Board is currently reluctant to issue more shares as we believe this would dilute shareholders' interest in LTL, hitherto the most important and value creating asset the Company owns.

[clive205] 21/10/2011 10:41

Some chart analysis:

[topvest] 29/10/2010 08:18

Yes, absolutely. It's just won a £100m Witan mandate for example.

[plumchops] 29/10/2010 02:37

I have held these shares since they launched at £100 and bought more when they dipped briefly below par.
They are a very solid investment and Nick Train is an astute reader of the markets who follows trends and invests for long term growth. The holding in the Lindsell Train Fund Business is indeed a Jewel and I would suggest that it has quite a value currently and will appreciate further as the funds under management continue to grow.

[topvest] 23/7/2009 20:48

Yes, good point. 25% investment in Lindsell Train could be worth a bit at some point. Valued at £1.9m at the moment. All the assets are pretty solid, except Marston's.

[konkel] 22/7/2009 11:00

Yeah, I've been accumulating over the past 6 months. I used to be in the business and have met Nick Train many times from his GT days. Always an impressive speaker and certainly knows his onions. The trust also holds a position in the Lindsell Train holding company which may be the "jewel in the crown" sometime down the line.

[topvest] 06/7/2009 18:00

I thought that I would start a thread on this extremely cautiously run absolute return trust. I've recently added a few as I think Nick Train appears to have a solid investment record.

The trust's objective is "To maximise long-term total returns subject to the avoidance of loss of absolute value and with a minimum objective to maintain the real purchasing power of Sterling capital, as measured by the annual average yield on the 2.5% Consolidated Loan Stock."

Nick Train appears to have a "Buffet for the UK" strategy.

Anyone else hold?

[dasein] 22/6/2007 22:38

I think ADVN have the wrong share price clarky..coreect price per share is £172..so div yield 1% not 100% :))
the company reports make interesting reading... definitley from the buffet/graham school of investing !

[clarky3] 21/6/2007 20:41

Can someone explain the dividend payout for lindsell train

[clarky3] 21/6/2007 20:41

Can someone explain the dividend payout for lindsell train

[supervisor] 18/6/2001 17:32

The same thing happened today.

[dorsey] 24/1/2001 19:58

Hilary, It was not just ADVFN, I checked other sites and they all said the same (not that it matters anymore)

Regards

[hilary] 24/1/2001 07:21

Dorsey,

Not that I can specifically recall, but considering advfn's site problems over the last few days ............

[valter] 23/1/2001 22:37

Well, now I know as well!

[dorsey] 23/1/2001 21:56

Y2K, I know what you're saying but mm's would have to justify such a fall for audit purposes.

Hilary, Thats the only logical explanation I could think of. Have you ever known that to happen before?

Regards

[hilary] 23/1/2001 21:29

Should add that if my theory is correct then they would actually be up today by 2 or 3% on zero trade.

[hilary] 23/1/2001 21:24

Dorsey,

I know nothing of lti, but noticed the fall this morning. I came to the conclusion that there was probably a data feed error and yesterdays prices were probably in pennies which had been posted as pounds and which were posted correctly today. How many ipos do you know that come to the market at £1100 per share?

[y2ksailorbar] 23/1/2001 20:52

Dorsey-mm,s never justify anything.Worth remembering.