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IC recommends taking profits on Lindsell Train before premium collapses

Closed-end funds and OEICs
richfool
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IC recommends taking profits on Lindsell Train before premium collapses

#147484

Postby richfool » June 23rd, 2018, 10:36 am

Investor's Chronicle recommends taking profits on Lindsell Train IT (currently at a premium of around 35%) before the premium collapses:
Lindsell Train Investment Trust (LTI)'s underlying investments include a stake in Lindsell Train, the asset management company that runs it, which accounts for over 40 per cent of the trust's assets. And a recent upward re-evaluation of this asset manager has also driven up Lindsell Train Investment Trust's share price so that it trades on a premium to net asset value (NAV) of around 35 per cent. Asset manager Lindsell Train made a total return of 54 per cent over the year to the end of March 2018, according to the trust's latest annual report.


https://www.investorschronicle.co.uk/fu ... collapses/

nmdhqbc
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Re: IC recommends taking profits on Lindsell Train before premium collapses

#147504

Postby nmdhqbc » June 23rd, 2018, 12:13 pm

I think Nick Train himself said don't buy it a while back.

GJHarney
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Re: IC recommends taking profits on Lindsell Train before premium collapses

#148185

Postby GJHarney » June 26th, 2018, 6:39 pm

nmdhqbc wrote:I think Nick Train himself said don't buy it a while back.


Yes, he said it a few years ago. It has gone up massively since though, so his advice is not always to be obeyed perhaps!

The problem I suspect for many small investors that have done very well out of LTI (myself included) is that given the current very high price per share unless he decides to split and reissue (say by 10 or 20) then it could be a barrier for re-buying the shares in the future of you sell now, so my feeling is that many people who have enjoyed the ride will continue to hold.

UncleEbenezer
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Re: IC recommends taking profits on Lindsell Train before premium collapses

#149169

Postby UncleEbenezer » June 30th, 2018, 10:29 pm

I hold Lindsell Train OEIC.

If I held the IT at that ridiculous premium, it would seem a no-brainer to sell that and re-invest the proceeds at par.

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Re: IC recommends taking profits on Lindsell Train before premium collapses

#149205

Postby nmdhqbc » July 1st, 2018, 8:25 am

UncleEbenezer wrote:I hold Lindsell Train OEIC.

If I held the IT at that ridiculous premium, it would seem a no-brainer to sell that and re-invest the proceeds at par.


I guess it depends on whether you want shares in "Lindsell Train Limited" which the OEIC's don't hold. Or at least nowhere near 40% like the IT. Buying £10k of the trust would be £4k in an individual company and £6k in a collective investment. That £4 comes with the added risk and potential upside of an individual share.


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