Lindsell Train

#### I. Institutional Overview The 13F filing for the fourth quarter of 2025 provides a profound window into the investment philosophy of **Nick Train** and his firm, **Lindsell Train**. With a reported portfolio value of approximately **$3.943 billion** and a highly concentrated list of only **28 holdings**, the firm exemplifies a "high-conviction, low-turnover" strategy that is increasingly rare in an era of high-frequency trading and algorithmic dominance. Nick Train, often referred to as Britain’s answer to Warren Buffett, manages a portfolio that is not merely a collection of stocks but a curated assembly of "exceptional" businesses possessing durable competitive advantages, or "moats." **Scale and Stability Analysis** As of December 31, 2025, the total reported value of $3.94B represents the cornerstone of Lindsell Train's US-listed equity strategy. While the number of stocks remains remarkably low at 28, the scale of the assets under management (AUM) suggests a firm that is comfortable managing significant capital within a narrow universe of companies. This concentration is a deliberate choice; by focusing on a few dozen names, the institution can conduct exhaustive due diligence and maintain a deep understanding of each business model. The stability in the number of holdings—neither expanding into hundreds of names nor shrinking into a handful—indicates a mature investment process where new ideas must clear an incredibly high bar to displace existing "best-in-class" positions. **The Psychological Portrait of a "Quality" Investor** Analyzing the portfolio through the lens of institutional psychology reveals a manager who prioritizes **business quality** and **long-term compounding** over short-term market noise. The fact that many of the top holdings, such as **INTU (Intuit)**, **DIS (Disney)**, and **MDLZ (Mondelez)**, have been in the portfolio since 2013 (over a decade) speaks to a "permanent capital" mindset. This is an institution that views itself as a part-owner of businesses rather than a trader of tickers. However, the Q4 2025 data also reveals a subtle but important psychological shift: **active pruning**. Nearly every major holding saw a reduction in share count this quarter. This suggests a period of "tactical caution" or "rebalancing." In a market that has likely seen significant appreciation in "Quality" and "Growth" factors, Train appears to be harvesting gains or managing risk by trimming positions that have become outsized due to price appreciation. The psychological portrait is one of a disciplined gardener—not uprooting the prize roses, but carefully pruning them to ensure the overall health and balance of the garden. **Concentration as a Double-Edged Sword** With 28 stocks, the portfolio is inherently "active" and deviates significantly from any broad market index. This concentration implies that the institution is willing to accept higher idiosyncratic risk in exchange for the potential for superior long-term returns. The top 10 holdings alone account for a massive portion of the portfolio's value, meaning the firm's performance is inextricably linked to the fortunes of a few global giants in digital services, consumer staples, and financial technology. This quarter’s activity shows that even a "buy and hold" manager must eventually respond to valuation extremes or portfolio weight limits, leading to the widespread "Reduce" actions seen across the board. #### II. Sector Allocation Analysis The sector allocation of Lindsell Train is a stark reflection of its thematic investment approach. Rather than seeking broad diversification across all eleven GICS sectors, the firm makes massive, concentrated bets on industries it believes offer the best combination of pricing power, intellectual property, and scalability. | Sector | Weight (%) | Trend | | :--- | :--- | :--- | | Communication Services | 43.04 | Dominant Overweight | | Technology | 19.63 | Core Growth | | Consumer Staples | 15.69 | Defensive Anchor | | Healthcare | 10.13 | Specialized Quality | | Financials | 6.72 | Transactional Moats | | Consumer Discretionary | 4.63 | Selective Brand Power | | Industrials | 0.16 | Negligible | **Concentration Analysis: The Power of Three** The top three sectors—**Communication Services, Technology, and Consumer Staples**—collectively account for **78.36%** of the total portfolio. This level of concentration is extraordinary and signals a firm that is "all-in" on the digital economy and global consumer brands. A concentration level above 70% in three sectors indicates a "thematic" investment style. Lindsell Train is not betting on the "US Economy" in a general sense; it is betting specifically on the **monetization of data, software ecosystems, and global brand loyalty**. **Communication Services: The Digital Content and Platform Bet** At **43.04%**, Communication Services is the undisputed heavyweight of the portfolio. This allocation is driven by massive positions in **GOOGL (Alphabet)**, **TKO (TKO Group)**, and **DIS (Disney)**. The logic here is clear: in a world of infinite content, the platforms that aggregate attention (Alphabet) and the entities that own "must-have" intellectual property (TKO’s UFC/WWE and Disney’s franchises) possess immense pricing power. The institution clearly views these not as "media companies" but as "digital toll bridges" that capture a percentage of global consumer spending and time. **Technology and Consumer Staples: Growth and Stability** The **19.63%** in Technology is anchored by **INTU (Intuit)** and **FICO (Fair Isaac)**. These are "sticky" software businesses with high switching costs. Meanwhile, the **15.69%** in Consumer Staples (PepsiCo, Mondelez) provides a defensive buffer. However, the trend in Staples this quarter was one of significant reduction. This may indicate a macro judgment that the "valuation premium" for staples has become too high relative to their slowing growth, or perhaps a concern over the impact of GLP-1 medications on long-term snack and beverage consumption—a major theme for companies like PEP and MDLZ. **Macroeconomic and Industry Trend Insights** The sector layout suggests a "Barbell Strategy." On one side, the firm holds aggressive growth and platform monopolies (Tech and Comm Services); on the other, it holds cash-generative, defensive staples. The notable absence of Energy, Materials, and Utilities suggests that Nick Train avoids capital-intensive, commodity-sensitive businesses that lack proprietary pricing power. The shift seen this quarter—trimming Staples and even some Tech—while maintaining massive exposure to Communication Services suggests a belief that **content and data** remain the most resilient assets in an uncertain macro environment. The institution appears to be betting that even if inflation persists or growth slows, consumers will continue to use Google search, watch live sports (TKO), and use essential acc ---