In the most recent 13F, Terry Smith’s Fundsmith LLP reported a portfolio valued at $23.02 billion, with the top five holdings making up a substantial 43.49% of total assets. Smith, often described as a buy-and-hold investor with a focus on high-quality growth companies, continues to emphasize durable franchises with strong cash generation. Below is a detailed look at each of the top five positions.
Meta Platforms Inc. (META) – 11.44%
Fundsmith’s largest holding is Meta Platforms, with 3.57M shares worth $2.63B, accounting for 11.44% of the portfolio. While the stake was trimmed by about 315,000 shares (-8.11%), Meta remains Smith’s top conviction bet, reflecting confidence in its dominant social media ecosystem and monetization potential despite heavy AI investments.
Microsoft Corp. (MSFT) – 10.68%
The second-largest position is Microsoft, with 4.94M shares valued at $2.46B (10.68% of assets). Fundsmith cut the position modestly by 428,653 shares (-7.98%), yet it continues to anchor the portfolio as a core compounder, benefiting from its leadership in enterprise software and cloud computing through Azure.
Stryker Corp. (SYK) – 8.04%
Healthcare exposure is evident in Stryker, where Fundsmith owns 4.68M shares worth $1.85B (8.04% weight). The position was reduced by about 392,000 shares (-7.74%), but Stryker remains a pillar of the strategy due to its entrenched position in medical technology and steady demand for surgical equipment.
Philip Morris International (PM) – 7.18%
Smith’s fund holds 9.07M shares of Philip Morris, valued at $1.65B and representing 7.18% of the portfolio. Despite trimming 1.73M shares (-16.03%), PM continues to feature prominently, reflecting confidence in the company’s cash flow resilience and ongoing transition toward reduced-risk products.
IDEXX Laboratories (IDXX) – 6.15%
Rounding out the top five is IDEXX Laboratories, with 2.64M shares valued at $1.42B (6.15% portfolio weight). The stake was nearly unchanged (a minor 9,042 share reduction, -0.34%), underscoring Smith’s long-term conviction in the global leader in veterinary diagnostics and animal health.
Conclusion
Fundsmith’s portfolio continues to highlight Terry Smith’s disciplined strategy of concentrating on a small number of high-quality companies with durable advantages. While some trimming occurred across several holdings this quarter, the fund remains focused on businesses capable of compounding value over time. The balance of technology, healthcare, and consumer franchises shows Smith’s commitment to quality growth at sensible valuations, reinforcing the fund’s reputation for consistency and long-term focus.
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:
