Monthly Update

Lindsell Train Investment Trust PLC
16 February 2007


                                        The Lindsell Train Investment Trust PLC
                                                   As at 31 Jan 2007
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.

Net Asset Value                                                       GBP 152.70
Share Price                                                           GBP 148.50
Premium (Discount)                                                        (2.8)%
Market Capitalisation                                                 GBP 29.7mn
Benchmark (21/2% Con Ann Avg Yield +4.4%)                                   +0.4
Source: Bloomberg; NAV-Lindsell Train. Share Price
quoted is closing mid price. See Benchmark definition.

Performance History (based in         2002    2003      2004         2005            2006               YTD 2007
GBP)
Net Asset Value TR%                   -9.6    +3.1      +23.7        +16.5           +13.7              +2.6
Share Price TR%                       -19.8   -8.7      +20.6        +27.5           +20.1              -1.3
Source: LTL and S&P Micropal. Performance years listed Jan - Dec. Launch date 22 Jan 2001. TR=Total Return (with
dividends reinvested) *Source: Lindsell Train Ltd. 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.


2006 Performance    Jan  Feb  Mar  Apr  May  Jun   Jul    Aug      Sep        Oct            Nov              Dec
Net Asset Value TR% +0.9 +1.9 +1.2 -1.8 -2.0 +1.8 +1.7   +2.1     +3.2       +0.5            +0.2             +2.8
Share Price TR%     -3.0 +7.5 +1.5 +3.4 -1.5 -2.6 +3.2   +4.1     +5.7       +3.0            +3.6             -1.6
Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.


2007 Performance      Jan  Feb  Mar  Apr  May  Jun   Jul    Aug      Sep        Oct           Nov             Dec
Net Asset Value TR%  +2.6
Share Price TR%      -1.3
Source: LTL and S&P Micropal unless otherwise indicated. Performance years listed Jan - Dec. Launch date 22 Jan 2001.
TR=Total Return (with dividends reinvested) *Source: Lindsell Train Ltd.

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                                                            15.8
Preference Shares                                                11.9
Equity - Media                                                   11.6
Equity - Banks & Investment Co.                                  6.6
Equity - Leisure & Ent.                                          15.0
Equity - Food & Beverage                                         28.8
Equity - Consumer Goods                                          1.6
Equity - Internet                                                1.6
Investment Fund                                                  20.0
Cash & Equivalent                                               (12.9)
Total                                                           100.0
Source: Lindsell Train


Top 10 Holdings                                                % of NAV
HBOS 9.25% Non Cum Pref Stk                                      11.9
Barr AG                                                          11.0
Lindsell Train Global Media (Dist)                               10.2
Nintendo                                                          7.9
Cadbury Schweppes                                                 7.6
Diageo                                                            7.5
Marston's                                                         7.1
Lindsell Train Ltd                                                6.6
21/2% Consolidated Loan Stock                                     6.1
Lindsell Train Japan (Distr)                                      5.4
Source: Lindsell Train


Fund Exposure         Bonds      Prefs        Equity          Funds              Cash                 % of NAV
UK %                   10.7      11.9          50.5            4.4              (13.5)                  64.0
USA %                  5.1         -            2.7             -                4.8                    12.6
Europe (ex UK) %        -          -            4.2             -               (2.2)                    2.0
Japan %                 -          -            7.9            5.4              (2.1)                   11.2
Global %                -          -             -             10.2               -                     10.2
Total                  15.8      11.9          65.3            20.0             (13.0)                  100.0
Source: Lindsell
Train


Fund Manager's Comments


Your NAV rose nearly 2.8% from the end of the calendard year to 2nd February (2.6% during the month). This was a good
return, which, as often with this strategy, bore little correlation to that delivered by the broader indices - for
instance the FT All-Share Index was actually marginally down during January. Important contributors were Nintendo up
15.0%, the largest equity position, A.G. Barr, which put on 8.6% - rather mysteriously to us, Cadbury up over 5.0% and
Pearson and Reed up nearly 4.0%. These last three were mediocre performers in 2006 and we hope their gains are the
start of something big.

Below I attach a piece written at the back end of last year, which reviews the span of my investment career and
illustrates how certain hard-learned lessons inform the way we approach the investment challenge - at least so far as
the UK equity market is concerned. You may or may not find the conclusions trite, but to the extent they are a true
reflection of what we do - and they are, we hope the piece will be of interest to holders of LTIT.

An Old Timer Looks Back

As the years go by, the milestones loom up ever faster. Last year, 2005, Mike and I mustered a heartyish cheer for
Lindsell Train Limited's fifth birthday. Now, in 2006, I let out a hollow groan, as I bumped up against the ugly
realisation that this year marked the completion of the first 25 years of my City career. Yes, it was as long ago as
June 1981 that I, as a precocious seven year-old, joined a business called GT Management Limited - Good Times
Management - now, sadly, long since swallowed up in the swirl of the City dance.

A quarter of a century is a long time to practice any discipline and, in the circumstances, I hope you can forgive what
follows. This year I have given plenty of thought to what lessons, if any, I can claim to have learned about the
investment trade over the past 25 years. And below are six I've learned, sometimes very painfully so. I share them not
because I think they have any particular pedagogic value - I would not dare to lecture or teach fellow industry
participants. But because each of these lessons has demonstrable relevance for the way Lindsell Train approaches the
challenge of trying to outperform the UK equity market and for the current structure of our investment portfolios.

Lesson 1. Dividends Really Matter.

The first public fund over which I was given full responsibility was a UK Equity Income unit trust. I was a somewhat
ungrateful appointee, hankering, with youthful hot bloodedness, to manage a dynamic 'growth' fund. However, I was
reconciled to the task of running an ostensibly dowdier 'income' fund by the wisdom of my then boss, who persuaded me
that a well-managed Income Fund will, over time, trounce the return of most hyperactive growth strategies. He further
demonstrated to me that, as of early 1985, the average UK Equity Income unit trust had outperformed the average UK
Growth Fund over short, medium and longer time periods. As you can see below, what was true in 1985 remains so today,
with the performance of the average UK Income Fund superior to that of the average constituent of the UK All Companies
sector - amazingly over all periods out to twenty years. Into the bargain, the average Income Fund has delivered a
return well in excess of the FT All-Share Index. Even after all these years, the statistics surprise. Why should this
particular approach to the UK Equity challenge - an approach based on the capture of above average levels of dividend
return, do so persistently well? One must conclude, we submit, that the majority of investors get over-excited by short
term prospects for capital growth, often chasing pure puff, while underestimating the long term compounding effect of
locking into growing streams of honest-to-goodness cash dividends. And that, for the patient investor, this misplaced
euphoria creates an exploitable anomaly.

We have purchased two new holdings in 2006, Euromoney and Unilever. These securities are, we think, meaningfully
undervalued - Euromoney because the illiquidity of its stock (resulting from its majority ownership by Daily Mail) has
depressed its rating compared to similar companies; Unilever because for years it has frustrated its shareholders into
unwarranted negativity. You may disagree with our analysis - what is incontrovertible though, is that each stock
offered us a starting dividend yield of 4.0% net, a third higher than average and higher than the net yield on a
long-dated gilt. Any equity purchase is a bet - that ones perception of value is superior to that of the person on the
other side of the trade - being paid a fat dividend shifts the odds of that bet slightly in your favour.

Lesson 2. Concentrate Your Eggs in One Basket

One of GT Management's founders, Richard Thornton, taught his young fund managers an important lesson. 'Great
money-making ideas are rare' he'd say, 'make sure that when you find one, you make it count'. Indeed, here is Richard's
4-point action plan for investment success:

- Identify your great investment idea.

- Buy as much of the idea as you feel comfortable with.

- Buy the same amount again, so you can no longer sleep at night, because of the size of your holding. Finally,

- TELL EVERYONE ELSE ABOUT IT!

This advice can be summarised, in contemporary parlance, as to build 'high conviction, highly concentrated' investment
portfolios. And a high conviction, high concentration portfolio is certainly what we have delivered to our clients over
the years. Currently, our open-ended UK Equity Fund has just 21 holdings and the top ten positions account for 65.0% of
the total.

You are probably and correctly wondering whether such a tight clutch of eggs brings with it risk of above average
volatility, even capital loss. The answer is certainly - 'yes'. Although the risk is softened by the effects of lesson
4, below. Nonetheless, we and we're sure Richard Thornton, are unapologetic. The truth is that in the investment
business as elsewhere, 'you don't get owt for nowt'. To outperform a capital market as efficient as the London equity
market, after expensing all costs, is not easy and requires the taking of more risk than is commonly supposed.

Lesson 3. It is Supposed to Hurt

The risk that we take has, of course, hurt us periodically. However, as time has gone on, we have come to recognise
that this business is actually supposed to hurt - that the pain is to be welcomed, as a sign that you're doing
something right. We are comforted by this quotation from George Soros and believe that most investors, particularly
professional, will agree:

'I found running a hedge fund extremely painful. I could never acknowledge my success because that might stop me
worrying, but I had no trouble recognising my mistakes.'

What Soros says resonates. Performing well is uncomfortable, because you never know where the next decent idea is
coming from. Meanwhile, periods of poor performance raise questions about ones judgement and strength of character.
Either way, this job hurts. I think that Andy Grove got it right, both for his own industry and ours, in his choice of
title for his autobiography. Andy Grove was the CEO of Intel and his book was called 'Only the Paranoid Survive'. If
you are not paranoid about your investment portfolio, you should be worried. It is the worry that makes you good.

Lesson 4. Don't Crimp on Quality

At inception Lindsell Train Limited took a strategic decision to devote its research efforts only on businesses that it
believes to be of the highest calibre. Indeed, central to our investment approach is the conviction that most
outstanding business franchises are undervalued by other investors for most of the time. This conviction arises largely
from our rueful contemplation of often fruitless attempts, in previous employments, to make money out of the opposite
strategy - in other words the attempt to make money by investing in the shares of low quality companies (when one
judges them exceptionally undervalued). This we found much harder and more uncertain work than our current policy.

One of my favourite Warren Buffett quotes illustrates the tribulations of being the business manager of a low quality
company. Buffett's vehicle, Berkshire Hathaway, was, of course, a textile company when he first acquired it and
continued to trade as one for many years, until even Buffett's famous patience wore thin. Here is what he had to say
about running an archetypal 'problem' company.

'One path leads to despair and utter hopelessness, the other to total extinction. Let us pray we have the wisdom to
choose correctly.'

I have no doubt that this sobering experience encouraged Buffett to adopt his 'only buy the best' approach. For me, it
was my third or fourth failed attempt to make money in Pilkington Glass that finally persuaded me to cease banging my
head against that particular glass ceiling.

Lesson 5. Don't Try to Predict the Unpredictable

Early in my career, I read Peter Lynch's book (the great Fidelity US equity manager of the 1970's and beyond) - 'One Up
On Wall Street'. In it he offers this uncompromising judgement. 'No one can predict the economy, interest rates or the
stock market. Dismiss all such forecasts.' Regrettably, it was years before I took Lynch's advice seriously - years, in
hindsight, spent trading client capital in and out of markets and stocks on the basis of more or less spurious guesses
about such imponderables as the trend in real interest rates or currency crosses. Sometimes, when I guessed right about
an economy - a recession for instance - the stock market would provoke me by behaving as the text books said it
shouldn't. The only certain gainers from all this activity were intermediaries in the capital markets - not our
clients. So, Mike and I have stopped, or, more precisely, we endeavour to make few or no investment decisions based on
assessment of macro-economic factors and, at all times, to limit, where possible, our capital market activity to a
minimum. Portfolio turnover for our UK portfolios remained unusually low again in the last financial year, at 5.1% of
start of year value.

Lesson 6. Be Optimistic

Reviewing the past 25 years, this last lesson strikes us as being the most important of all. At times we have been
exhilarated and at others nauseated by the rollercoaster of the stock markets, but, on balance, we have learned that
pessimism and cynicism don't pay. It is attractive to play the part of the worldly-wise sceptic - as John Kenneth
Galbraith says somewhere - 'We all agree that pessimism is the mark of a superior intellect'. But it is dangerous to
invest as one. The last 25 years really have proven to be 'The Triumph of the Optimists' - the title of the recent book
demonstrating the power of equity investment.

Accordingly, about 10 years ago, I took the decision to give up my mean, moody image as a cynical man of the world and
adopt, instead, the character of a childishly naive 'perma-bull'. I have never had reason to regret that decision and,
today, we remain earnestly optimistic about the outlook for Capitalism, for the vitality of capital markets the world
over, for the UK stock market and for our investment portfolios.


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
Donald Adamson                          Performance Fee: 10% of annual increase Springfield Lodge, Colchester Road
Dominic Caldecott                       in the share price, plus dividend,      Chelmsford
Michael Lindsell                        above the gross annual yield of the 2   ESSEX  CM2 5PW
Michael Mackenzie                       1/2% Consolidated Loan Stock.

ISIN                                    Secretary                               Listing
GB0031977944                            Phoenix Administration Services Limited London Stock Exchange

Bloomberg
LTI LN

Disclaimer
Risk Warning This factsheet is intended for use by shareholders of the Lindsell Train Investment Trust ('LTIT') and/or
persons who are authorised by the UK Financial Services Authority or those who are permitted to receive such
information in the UK. Any opinion expressed whether in general or both on the performance of individual securities and
in a wider economic context represents Lindsell Train's views at the time of preparation. They are subject to change
without notice and should not be construed as investment advice or investment recommendation. Past performance is not a
guide to future performance and may not be repeated. The value of investments and income from them can go down as well
as up and you may not get back the amount originally invested. Lindsell Train Investment Trust plc is an investment
trust company listed on the London Stock Exchange. Investment trusts have the ability to borrow to invest which is
commonly referred to as gearing. Companies with higher gearing are subject to higher risks and therefore the investment
value may change substantially. The net asset value ('NAV') per share and its performance of an investment trust may
not be the same as its market share price per share and performance.

Issued by Lindsell Train Limited
Authorised and regulated by the Financial Services Authority
15 February 2007 LTL 000-043-4

                                                Lindsell Train Limited
                         2 Queen Anne's Gate Buildings, Dartmouth Street, London SW1H 9BP U.K.
                                     Tel. [phone]  Fax. [phone]
                                   [e-mail]  www.lindselltrain.com
                Lindsell Train Limited is authorised and regulated by the Financial Services Authority.





                      This information is provided by RNS
            The company news service from the London Stock Exchange