Nick Train on UK Companies Poised for Growth and Profit Amid AI Boom

Nick Train, a renowned UK fund manager, expects a comeback from large UK household name stocks, particularly those with growth potential in technology. Despite underperformance, Train remains optimistic and believes that companies like Diageo and Burberry have great value and potential for future growth. He also highlights the importance of sticking to the trust's approach and not shaking things up during challenging periods.

Renowned UK fund manager Nick Train, known for his Warren Buffett-style investing approach, recently shared his optimism on the future prospects of large UK household name stocks, particularly those with growth potential in technology. Despite recent underperformance, Train remains optimistic and believes companies like Diageo and Burberry offer great value and potential for future growth.

In a recent interview on the Investing Show, Train discussed how he has handled the period of underperformance and emphasized the importance of sticking to the trust's clearly laid-out approach rather than shaking things up [2]. He expressed confidence in a cohort of more growth-oriented companies coming through in the UK that are world-class and can profit from rapid advances in technology.

Train highlighted Diageo and Burberry as two household name holdings that have suffered in recent years but have great potential for future growth. He revealed the new stock he has bought that fits this profile and discussed other companies in Finsbury Growth & Income’s concentrated portfolio that he believes are both great value and primed to perform for investors.

Diageo, a global leader in the production and marketing of alcoholic beverages, has seen a recent increase in its stock holdings by Cobblestone Capital Advisors LLC NY, who increased their stake by 5.4% to own 121,243 shares worth approximately $12.7 million [1]. Despite varying analyst ratings, with a consensus rating of "Hold" and an average price target of $129.00, the company's fundamentals, including a debt-to-equity ratio of 1.62 and a price-to-earnings ratio of 15.97, suggest potential for growth.

Train's optimism aligns with the increasing interest in AI-driven growth opportunities, both in the US and among FTSE-listed firms. As investors continue to focus on US tech giants, Train believes there are substantial opportunities in the UK market that are being overlooked.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-diageo-plc-nysedeo-stake-raised-by-cobblestone-capital-advisors-llc-ny-2025-08-10/
[2] https://www.thisismoney.co.uk/money/investingshow/article-14998277/Nick-Train-interview-world-class-UK-companies-primed-profit-going-cheap.html