#51 The Franchise Fan - Nick Train on Durable Franchises and 20‑Year Holding Periods

Nick Train, a renowned UK investor with a 40-year track record, discusses his long-term investment philosophy, focusing on "eternal franchises" and rarely trading. Inspired by Warren Buffett and colleague Alex Dundas, Train explains his shift towards valuing capital-light digital businesses, citing Rightmove as an example of a company with extraordinary economics deserving a higher valuation. He contrasts his approach with Anthony Bolton's, describing his investment journey as finding a rare "monolith" in a desert rather than numerous opportunities on a beach. Train also addresses the drawbacks of concentrated portfolios, the importance of capital allocation, and his views on Diageo, acknowledging recent underperformance while maintaining conviction in its long-term potential.