UK Fund Manager Says Some London-Listed Stocks are Underowned

U.K. fund manager Nick Train says several London-listed companies remain overlooked despite years of relative underperformance in the domestic market, according to comments on Edison’s The Master Investor Podcast.

Train, known for his highly concentrated, long-term investment approach, said his portfolios typically turn over less than 5% a year, with many top holdings owned for more than a decade. 

He described selling any position as “a confession of error,” Edison noted. His top 10 holdings make up more than 80% of his fund.

Drawing on lessons from Warren Buffett and Charlie Munger, Train argued that owning a small number of “world-class businesses” for long periods remains the “most powerful route to wealth creation.” 

Despite acknowledging that UK equities have lagged the US for decades, Train believes select London-listed stocks are “under-owned” and “undervalued,” positioning them to benefit from global shifts such as artificial intelligence.

He is said to have highlighted London Stock Exchange Group and RELX as examples of companies with proprietary data, capital-light digital business models and AI-enabled analytics that can deliver compounding growth even if broad UK indices stay out of favour. 

He also defended Diageo after a difficult stretch, arguing that premium brands like Guinness and Don Julio should benefit over time from rising global wealth, similar to luxury groups such as LVMH. All three represent more than 10% of his portfolio, Edison said.

Train acknowledged recent underperformance and the discomfort associated with it, but said he has responded by buying more of his own trust and staying “relentlessly optimistic,” offering listeners the advice to “be bold, be disciplined, be optimistic.”