Nick Train believes portfolio's biggest loss-maker has bright future

PayPal is in 'strong position'

Lauren Mason
clock • 3 min read

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: Lindsell Train IT's weak performanc...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read