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Should you invest in Trainline?

The fund manager Peter Lynch was known for his theory that you should “buy what you know”. Of course, this was a bit more than simply buying the brands you encounter in your day-to-day shopping. Lynch also meant companies that you interact with through your job, or through being part of an industry, and he pointed out that you still had to do your homework to understand the business, balance sheet and valuation. But the logic is clear: sometimes the service you get helps you see why a company makes sense as an investment.

For me, Trainline (LSE: TRN) is a good example of this. The company specialises in selling rail tickets for the entire UK rail network. As someone who does a lot of long train journeys outside London, I find it useful in helping me to find the quickest route and the cheapest ticket, all for a low booking fee. Customer service is also good: in the cases when I’ve accidentally bought more tickets than I need, they have been fine with cancelling them and refunding me, provided I give a reasonable amount of notice.

Is Trainline a good stock to buy?

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