Nick Train: Why portfolio's biggest loss-maker still has bright future ahead

PayPal is in 'strong position'

Lauren Mason
clock • 3 min read
Lindsell Train's Nick Train
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Lindsell Train's Nick Train

E-commerce giant PayPal’s 26% freefall after its results were released earlier this month is not reflective of the firm’s prospects, according to Lindsell Train’s Nick Train, who has a 3.7% allocation to the company in his Lindsell Train investment trust (LTIT).

In his latest monthly report, Train said PayPal was the portfolio's biggest faller during the month of February, despite the fact it "possesses significant structural advantages" such as the compounding of its free cashflows at 18% per annum over the last seven years. The stock became known as one of the biggest winners from lockdown, as sales volumes increased by a third during the 2020-2021 financial year while its user base grew to 426 million, meaning its share price trebled over the time period as people switched to online shopping. Nick Train uses DMGT cash to top up Fever-Tree ...

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