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In this interview with Investors’ Chronicle, Terry Smith discusses the qualities he seeks in company management, focusing on strong capital allocation, transparency, and integrity. He values leaders who can thoughtfully allocate capital to generate consistent returns, reinvesting at high rates for compounding growth, regardless of stock market fluctuations. Smith also … Read More

In his book – Investing for Growth, Terry Smith contrasts his investment approach with traditional value investing, noting that while value investing can offer returns when stocks are undervalued, it requires active buying and selling and incurs higher transaction costs. Smith’s strategy focuses on companies with high, predictable returns on … Read More

In his book – Investing for Growth, Terry Smith reflects on the lesson that selling stakes in good companies is almost always a mistake. He uses Sigma-Aldrich, a chemical company, as an example. Despite its strong financial and operational characteristics, Smith’s firm sold its stake when the company attempted to … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During this interview with Dubai Eye, Terry Smith discusses his simple and effective investment strategy: buy good companies, don’t overpay, and then do nothing. Drawing a parallel with aviation, he explains that like a pilot managing a crisis, investors must first ensure their product or service delivers value before communicating … Read More

In the Fundsmith Owner’s Manual, Terry Smith discusses the importance of not just seeking a high rate of return but a sustainably high one. Key to this is repeat business, particularly from consumers who make frequent, regular purchases. Companies selling daily consumer goods tend to provide more consistent returns compared … Read More

In his book – Investing for Growth, Terry Smith says investing is like a marathon, requiring long-term commitment rather than short-term strategies. He compares investing to using 400-meter sprinters instead of a steady marathon runner. Constantly changing fund managers or stocks is risky, akin to frequently passing a baton, which … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During this interview with The Market NZZ, Terry Smith explains why the quality of a company is more crucial than its valuation. By examining historical data, he demonstrates that even if investors had paid high price-to-earnings (P/E) ratios for certain quality companies they would still have outperformed the S&P 500 … Read More

In this interview with Algy’s Investment Podcast, Terry Smith discusses his investment philosophy which revolves around the power of compounding returns through investing in high-quality companies that retain and reinvest a significant portion of their profits back into the business. He believes stocks are the only asset class that can … Read More

In his latest interview with The Market, Terry Smith explains why Investing in high-quality companies is more important than focusing on undervalued ones. Historical data shows that even high P/E ratios, such as 281 for L’Oréal, can lead to market outperformance over time. Warren Buffett advises that owning a great … Read More

In his book Investing for Growth, Terry Smith discusses the general view that stocks outperform bonds, the reality is that most stocks do not, and the positive returns are largely concentrated in a select few. Active investors typically fail to beat both equity indices and bonds, hindered by fees, inadequate … Read More

In his book, Investing for Growth, Terry Smith discusses his decision to sell Dominos, before the stock price increased by over 45% in 2016, underscoring the fallibility in such judgment calls. This experience illustrates his hesitation to heed advice suggesting that one should sell off a portfolio of great companies … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During this interview with The Daily Telegraph, Terry Smith answered a number of questions related to his investment strategy, including the most common mistake that investors make today. Here’s a transcript from the interview: What do you think, the best company in the world is, and why? L’Oréal. It is … Read More

During his latest 2024 Fundsmith Annual Meeting, Terry Smith argues that there’s nothing new under the sun, using movies and stock market trends as examples. Movie plots are recycled, exemplified by the “Magnificent Seven” being a remake of “Seven Samurai”. Similarly, hot stock picks aren’t entirely new either. The “Magnificent … Read More

During this interview with Killik & Co, Terry Smith discusses the difficulty of being able to consistently time the market based on short-term trends, highlighting the challenge of predicting which sectors will perform well in the future. Here’s an excerpt from the interview: Smith: I guess my take on them … Read More

In his 2012 Fundsmith Annual Letter, Terry Smith emphasizes that his investment strategy is not about outperforming in every reporting period or market condition but aiming to outperform the market and other funds over longer periods. He draws an analogy with the Tour de France, highlighting the diverse stages that … Read More

In this interview with the Money Maze Podcast, Terry Smith discussed some of his unconventional approaches to macro investing. His key points are: He invests in companies and considers macro factors, but company data is seen as more insightful than traditional statistics like CPI or GDP Payment processors like Visa … Read More

In his latest 2023 Annual Letter, Terry Smith discusses the rise of AI as a significant force behind market growth, particularly for Nvidia and the Magnificent Seven. He offers the following observations: AI Hype: The recent surge in AI’s stock market popularity isn’t entirely new. Significant developments occurred earlier, like IBM’s Watson … Read More