The Motley Fool

£10k to invest? Why I’d buy Lindsell Train Global Equity Fund and hold it for 20 years

Image source: Getty Images.

The Lindsell Train Global Equity Fund has been one of my strongest performers in 2019, and I think that will continue throughout the new decade and beyond.

The fund has certainly benefited from its investments in Disney, which has seen a stellar second half of the year with the launch of the streaming service Disney+.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Nick Train is a strong hand

Every good fund needs a strong managing hand at the tiller – one who sticks to sound investing principles and doesn’t makes waves. For Fundsmith, it’s Terry Smith. For Lindsell Train, it’s Nick Train. Probably one of the best things about Nick’s investing strategy is that he relies on low turnover in and out of the Lindsell Train Global Equity Fund.

This approach makes sense to me. if you believe in the long-term health of a business, it should continue to deliver for many, many years. It would take a fairly catastrophic event to see one of the stable multinational businesses drop out of Nick’s top-10 list in the fund.

However, this normally quiet investment manager hit the headlines at the end of December because two of his popular funds – the £9.5 billion LF Lindsell Train UK Equity Fund and the Finsbury Growth & Income investment Trust – lost their gold star status with investment services company Morningstar over liquidity concerns.

I think this shows that the market is desperate to avoid another Neil Woodford-style scandal, where a fund manager running rampant and largely unchecked by his investors was allowed to collect millions of pounds a month in fees even while his funds were vastly underperforming.

I don’t think Nick Train is Neil Woodford. Far from it.

Top 10

I like the mix of UK, US, and Japanese firms in the Lindsell Train Global Equity Fund. Companies in these three countries make up 87% of the fund.

Unilever is the largest holding, followed by drinks giant Diageo, then Heineken. The London Stock Exchange Group is fourth and Disney the fifth largest.

Rounding out the top 10 are games manufacturer Nintendo, internet payment services provider Paypal, FTSE 100 scientific publisher Relx, NASDAQ-listed Quickbooks owner Intuit, and Japanese consumer chemicals company Kao Corporation.

Diversification

Thankfully, all of the UK and US companies listed deal internationally. So while 7% of the fund is in Dutch companies and 3% in Italian firms, there is a relatively small exposure to European stocks, which I like.

The fund has a stake of around 9% in Unilever, which has seen an unusual share price dip in the latter half of 2019. This was based on a trading update that showed sales growth was predicted to be at the lower end of forecasts.

I have suggested that if you are a value investor and want a stable FTSE 100 grower, then now is a good point to buy Unilever.

A little of this

In my opinion the Lindsell Train Global Equity Fund has the right mix of international companies and growing businesses with diversification across sectors to guard against a failure in any one area. Its analysts take the time to find the right companies that can remain in the fund for the long term with little churn or turnover. If I had £10,000 on hand then I would put it into this fund.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.