Monthly Update - 11.2004

Lindsell Train Investment Trust PLC
17 December 2004


                                       The Lindsell Train Investment Trust PLC
                                              As at 30th November 2004


Fund Objective

To maximise long-term total returns subject to the avoidance of loss of absolute value and with a minimum objective to 
maintain the real purchasing power of Sterling capital, as measured by the annual average yield on the 2.5% Consolidated
Loan Stock.

Share Price                                                           GBP 101.50
Net Asset Value                                                       GBP 111.30
Premium (Discount)                                                        (8.8%)
Market Capitalisation                                                 GBP 20.3mn
Benchmark (21/2% Con Ann Avg Yield +4.9%)                                   +0.4
Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.

Performance History (based in GBP)                                 2004 YTD       2003        2002       2001       2000
Net Asset Value %                                                   +19.7         +3.5        -9.6       +3.2        n/a
Share Price %                                                       +21.1         -8.4        -19.8      +18.5       n/a

Source: S&P Micropal. Based in GBP. Performance years listed Jan - Dec. Launch date 22 Jan 2001. With dividends added 
back.

Past performance is not a guide to future performance. The price of units and the income from them may go down as well 
as up. Investors may not get back what they invested.

2003 Performance  Jan 03   Feb 03   Mar 03   Apr 03   May 03   Jun 03   Jul 03  Aug 03   Sep 03  Oct 03  Nov 03  Dec 03
Net Asset Value %   -3.8     +1.9     -2.0     +2.0     +4.0     +0.9     +2.7    +1.0     -2.7    -0.5    -0.7    +1.0
Share Price %       +0.5     +0.0     +0.0     +0.0     +0.0     -2.5     -1.1    +2.2     -4.3    +2.3    -11.0   +6.2

2004 Performance  Jan 04   Feb 04   Mar 04   Apr 04   May 04   Jun 04   Jul 04  Aug 04   Sep 04  Oct 04  Nov 04   Dec 04
Net Asset Value     +1.8     +3.3     +0.3     +2.3     -0.1     +2.5     -2.0    +4.8     +3.8    +0.7*   +1.0*
Share Price %       -2.3     +6.0     -0.6     +0.6     +2.3     +3.2     +0.5    +0.5     +8.6    +3.0    -1.9

Source: S&P Micropal unless otherwise indicated. Based in GBP. Performance years listed Jan - Dec. Launch date 22 Jan 
2001. With dividends added back. *Source: Lindsell Train Limited.

Past performance is not a guide to future performance. The price of units and the income from them may go down as well 
as up. Investors may not get back what they invested.

Industry Breakdown                                                 % of NAV
Bonds                                                                  25.0
Preference Shares                                                      14.4
Equity - Media                                                          8.1
Equity - Banks & Investment Co.                                         3.6
Equity - Leisure & Ent.                                                 9.6
Equity - Food & Beverage                                               33.5
Investment Fund                                                        23.2
Cash & Equivalent                                                    (17.4)
Total                                                                 100.0
Source: Lindsell Train


Top 10 Holdings                                                    % of NAV
Glenmorangie A&B                                                       14.6
US Gov Treasury 6.25%                                                  10.6
Lindsell Train Global Media (Dist)                                     10.0
HBOS 9.25% Non Cum                                                      9.7
Lindsell Train Japan (Dist)                                             9.2
Barr AG                                                                 9.0
21/2% Consolidated Loan Stock                                           8.3
Cadbury Schweppes                                                       6.2
UK Treasury 2.5%                                                        6.1
Wolverhampton & Dudley Breweries                                        5.2
Source: Lindsell Train


Fund Exposure                     Bonds          Prefs        Equity         Funds         Cash          % of NAV
UK %                              14.4           14.4          48.6           4.0         (17.3)           64.1
USA %                             10.6             -            1.8            -            3.4            15.8
Europe (ex UK) %                    -              -             -             -             -              -
Japan %                             -              -            4.4           9.2          (3.5)           10.1
Global %                            -              -             -           10.0            -             10.0
Total                             25.0           14.4          54.8          23.2         (17.4)          100.0
Source: Lindsell Train




Fund Manager's Comments

The NAV rose modestly during November, in line with a 0.7% gain in the MSCI World Index in Sterling, but behind a 2.3% 
rally in the FT All-Share index. Our return was hampered by the weakness in the US Dollar, which declined by 4.0% 
against the Pound through November. The Trust's current 'look-through'* exposure to the Dollar is c26%, meaning the net 
impact on the NAV was in the order of 1% negative. We note that our Dollar exposure is somewhat lower in percentage 
terms, than the proportion of the FTSE 100 Index that now pays dividends in cents, rather than pennies. The FTSE is 28% 
made up of companies that have ceased or never paid Sterling dividends, led by BP, HSBC, AstraZeneca and pretty much all
the miners and to our mind, these stocks can effectively be regarded as US corporations. The fall in the Dollar is 
thereby having a far greater impact on UK investors' spending power than they perhaps realise and definitely crimping 
dividend growth for the market as a whole. In addition, UK earnings derived from the US probably account for a further
10-12% of the FTSE's value, for a rough 40% total exposure to the US for UK corporations. Our point here is not to make 
excuses for the level of Dollar exposure we have in the Trust, which is self-inflicted and has not been a glorious 
allocation of capital, even if it is, for instance, less than might be found in a UK Index Tracker Fund. Rather, to 
observe that it is hard for all investors in any developed world stock market to avoid the implications of a weak 
Dollar.

Another constraint on the NAV through November and beyond is the scale of our closing investment in Glenmorangie, to 
which we bid farewell to in January with regret. The 15% holding was unchanged in November, already having reflected the
full value of the Moet Hennessy bid, less the time value of the money. Once the capital is redeployed we hope to earn a 
more competitive return.

Over the month we added to our holding in Reed Elsevier, which has fallen back to the levels we began buying it at 12 
months ago. Reed has declined for similar reasons to last year and we return to it for the same too. The bears rest 
their case on the fact that Reed is a significant US Dollar earner, some 60.0% of revenues and acts as a convenient 
whipping boy for currency speculators. In addition, 28.0% of its revenues derive from its market-dominating Scientific 
Publishing division, where investors have concerns that the business model may be shifting, to the  disadvantage of all 
academic publishers. Finally, we sense a vague disdain in the market currently for Reed's franchises, because they are 
overwhelmingly subscription based. Subscription revenues may be admirably predictable, the essence of their attraction 
for us, but at times are dismissed as 'stodgy', to use the headline of the most recent piece of Morgan Stanley research 
on the company. The FT's Lex column articulated these concerns after Reed's recent trading update, then damned the 
company's dividend as 'miserly'.

We attended a presentation by Reed's CEO, Crispin Davis last month and came away with our quite opposite impressions of 
the company much enhanced, while always accepting the short-term influence of the currency. In fact, we believe Reed is 
one of the few genuine growth companies within the FTSE 100 Index, that its earnings are set to expand markedly over the
next 5 years and that its low-teen P/E multiple could expand materially to boot. In short, trading today at £4.65, Reed 
has the potential to be a £10.00 stock.

Our enthusiasm is founded on the opportunity presented to Reed by the Internet, to extend the reach of its franchises 
and to, at least, maintain its exceptional levels of profitability. Reed is already one of the largest Internet 
companies in the world by revenues, specifically with its on-line Science Direct service, its Lexis Nexis legal 
information business (used by every major US legal practice, according to Davis) and its business-to-business ('B2B')
publishing assets, around which Reed is building on-line communities. As evidence of its serious bona fides as an 
Internet stock, consider the recent joint venture announced between one of Reed's B2B subsidiaries, KellySearch and 
Google. Kellysearch is an on-line directory that has grown out of a business publication established in 1799 (not a 
misprint). It provides data on 2 million companies and their products worldwide, receiving 17 million user requests
a month, drawn by KellySearch's 'unrivalled taxonomy of 140,000 different search items'. Google has, effectively, 
recognised its inadequacy in the face of superior technology and entrenched user-pool and is paying Reed for the 
privilege of putting its own links onto KellySearch. Davis was recently quoted as saying about Google - 'We have had a 
lot of discussion over whether Google is an ally or a competitor. But there is a logic to working with Google in one
or two areas. Google brings its size and we bring our content'.

In Science, in Legal and in parts of its Business division, Reed has as rich and frequently visited 'cyber real estate' 
as any. Such territory is highly valuable, as is confirmed not only by the extraordinary valuations of the pure US 
Internet companies, like Google, but those of US business publishers that are successfully exploiting the Net, such as 
Dun & Bradstreet, P/E 22.0x, McGraw Hill, 25.0x, the recently acquired Marketwatch, 60.0x and best comparator
for Reed, Thomson Corporation, 27.5x. Reed's historic rating of 15.0x looks quite anomalously low.

Lex of the FT was recently critical of Reed's dividend policy. The company only pays out roughly one third of its 
earnings, compared to the market average ratio of 50.0%. If Reed chose to increase its payout ratio to that of the FT 
All-Share, its dividend yield would in fact be 15.0% higher than that of the average company. Given its operating 
margins of 26.0%, its ROE of 30.0%, the debt on the balance sheet and its growth opportunity, though, Reed, in our
view, is justified to restrict its payments at the moment. Certainly today's dividends are more generous than its US 
competitors who pay skimpier or in
some cases none at all.

The current holding in Reed is 3.0% of the Trust's assets, although this understates the true exposure, because it is a 
major position in both the Lindsell Train Media Fund and the Finsbury Growth and Income Trust (the 'look-through' 
exposure is above 4.5%) and we expect it to grow, both by the purchase of more shares, if they fall and, ultimately, by 
capital appreciation.

* Adjusting exposures to holdings of similar assets in the Funds held by the Trust.


Fund Manager                            Launch Date                             Denomination
Nick Train                              22 Jan 2001                             GBP
Year End                                Dividend                                Benchmark
31st Mar                                Ex Date: June                           The annual average yield on the 21/2%
                                        Payment: August                         Consolidated Loan Stock.
The Board                               Management Fees                         Registered Address
Rhoddy Swire                            Standard Fee: 0.65%                     Lindsell Train Investment Trust
Michael Mackenzie                       Performance Fee: 10% of annual increase 77A High Street
Donald Adamson                          in the share price, plus dividend,      Brentwood
Michael Lindsell                        above the gross annual yield of the 2   ESSEX  CM14 4RR
                                        1/2% Consolidated Loan Stock.
ISIN                                    Bloomberg                               Listing
GB0031977944                            LTI LN                                  London Stock Exchange

Disclaimer

This document is intended for use by persons who are authorised by the UK Financial Services Authority ('FSA') and those
who are permitted to receive such information in the UK. The information contained in this document does not constitute 
an offer or invitation to buy or sell any investments. Nothing in this document constitutes investment, legal, tax or 
other advice. Lindsell Train and/or persons connected with it may have an interest in this investment. The value of any 
investment in securities or funds and the income generated from them may go down as well as up and are not guaranteed. 
Past performance cannot be used as a guide or guarantee of future performance. You may not get back the original amount 
you have invested. Changes in foreign exchange rates may cause the value of your investment to go up or down. Some funds
with higher gearing may be subject to higher volatility and the investment value may change substantially. The net asset
value (NAV) performance of an investment trust is not the same as its market share price performance.


Issued by Lindsell Train Limited
Authorised and regulated by the Financial Services Authority
16 Dec 2004 LTL 000-022-2b


                                                   Lindsell Train Limited
                                           35 Thurloe Street, London  SW7 2LQ
                                     Tel. [phone]  Fax. [phone]
                                [e-mail]  http://www.lindselltrain.com/

               Lindsell Train Limited is authorised and regulated by the Financial Services Authority.



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