Lindsell Train Portfolio: Concentrated in Big Tech and Communication Services

Introduction

The investment strategy of Michael Lindsell and Nick Train, managing the Lindsell Train portfolio as of December 31, 2025, appears to favor large-cap technology and communication services companies. The portfolio demonstrates a significant tilt towards these sectors, with holdings in Alphabet Inc. (GOOGL) and Tocko Group Holdings Inc. (TKO) leading the allocation.

Top Holdings by Value

The largest position in the portfolio is Alphabet Inc. (GOOGL), commonly known as Google, representing approximately $653.7 million in value, or 16.58% of the total. This is followed by Tocko Group Holdings Inc. (TKO) at $589.4 million (14.95%) and Intuit (INTU) at $404.2 million (10.25%).

• GOOGL: 16.58% allocation, showing a slight decrease in shares (-6.51%) from the previous period.
• TKO: 14.95% allocation, also showing a decrease in shares (-4.55%) from the previous period.
• INTU: 10.25% allocation, showing a very small decrease in shares (-0.25%) from the previous period.
• TMO: 10.13% allocation, showing a significant decrease in shares (-15.66%) from the previous period.
• DIS: 10.05% allocation, showing a decrease in shares (-6.55%) from the previous period.
• FICO: 9.29% allocation, showing a small decrease in shares (-2.85%) from the previous period.

Sector Allocation

The portfolio's sector allocation highlights a strong preference for Technology and Communication Services:

• Communication Services: Dominated by Alphabet (GOOGL) and Tocko (TKO), this sector accounts for roughly 31.53% of the portfolio value (16.58% + 14.95%).
• Technology: Includes significant positions in Intuit (INTU) and Fair Isaac (FICO), making up about 19.54% of the portfolio value (10.25% + 9.29%).
• Healthcare: THERMO FISHER SCIENTIFIC (TMO) holds a substantial 10.13% allocation.
• Consumer Defensive: Pepsico (PEP) and Mondelēz International (MDLZ) together make up about 15.68% (6.56% + 6.12%).
• Financial Services: PayPal (PYPL) accounts for 6.36%.
• Consumer Cyclical: eBay (EBAY) accounts for 4.59%.

Changes in Holdings

The data indicates several holdings experienced changes in the number of shares held during the reporting period:

• Several top holdings saw a reduction in shares, including GOOGL (-6.51%), TKO (-4.55%), INTU (-0.25%), TMO (-15.66%), DIS (-6.55%), and FICO (-2.85%).
• Conversely, holdings like PEP (-18.15%), PYPL (-4.13%), MDLZ (-10.92%), and EBAY (-15.32%) also saw share reductions, though the focus here is on the top holdings and sector allocations.

Investment Strategy Analysis

The portfolio's structure suggests a strategy focused on established, large-cap companies across technology, healthcare, and consumer staples. The significant allocation to Alphabet and Tocko points to a preference for major players in digital advertising and online services. The inclusion of healthcare and consumer defensive companies adds diversification, though the portfolio remains heavily concentrated in specific sectors and large-cap stocks. The recent reductions in shares for several major holdings could indicate various factors, such as rebalancing, performance expectations, or strategic shifts, but the data does not specify the reason.