Nick Train says more than 40 years in investment management have reinforced a simple lesson: successful long-term investing depends on patience, conviction and a willingness to admit when the facts have changed.
His approach is built around owning a relatively small number of businesses for long periods rather than frequently trading in response to market movements. That concentration can increase risk when individual holdings disappoint, but it also means each investment is selected with a clear view of the company’s quality, competitive position and long-term prospects.
Train also addresses the debate between active and passive investing. He remains focused on the case for owning equities and on the opportunities available to active managers who are prepared to take positions that differ meaningfully from the wider market. The approach depends on identifying businesses that can remain valuable over many years rather than attempting to predict short-term share price movements.
The UK market is an important part of that strategy. Train highlights companies including Experian, Rightmove and RELX as examples of businesses with established positions in data, information and digital services.
Train does not view AI only as a threat to existing digital businesses. He argues that it could strengthen some established companies, particularly those that already have valuable data, strong customer relationships and widely used services. The key question is whether AI weakens a company’s competitive advantage or gives it new ways to improve its products and services.
Technology can create both disruption and opportunity. Businesses that are already deeply embedded in customer workflows may be better placed to adopt AI than companies starting without an existing market position. At the same time, established businesses still need to show that they can adapt as technology develops.
Nick believes that long-term investing works best when patience is supported by strong businesses, sensible valuations and evidence that the investment case remains intact. AI and changing market conditions may alter the risks facing individual companies, but they can also create opportunities for established businesses that are able to adapt.
Finsbury Growth & Income Trust Plc (LON:FGT) invests in the shares of predominantly UK-listed companies, with the objective of achieving capital and income growth.
