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
Terry Smith: The Quality of a Company Is More Crucial Than Its Valuation
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
Terry Smith: Stocks: The Only Asset Class That Truly Compounds Returns
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
Terry Smith: How to Consistently Beat the Index
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
Terry Smith: Build a Concentrated Portfolio Or Buy The Index?
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
Terry Smith: Don’t Sell Winning Stocks
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
Terry Smith – Top 10 Holdings – Latest 13F
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
Terry Smith: The Most Common Mistake That Investors Make Today
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
Terry Smith: Déjà vu in Stocks: Have We Seen This “Magnificent Seven” Before?
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
Terry Smith: Long-Term Investing vs. Chasing Hot Sectors: A Data-Driven Comparison
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
Terry Smith: Winning the Investment ‘Tour de France’ Over Time
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
Terry Smith: Investing Beyond the Headlines: Using Company Data for Economic Insights
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
Terry Smith: AI Hype or Real Revolution? Why Picking the Winners is a Fool’s Errand
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
Terry Smith: Return on Capital: The Key to Identifying Winning Investments
In his book Investing for Growth, Terry Smith provides investors with a summary of what a good company looks like. A good company is one that consistently generates high returns on capital (significantly above its cost of capital) across different economic conditions. His key points are: Return on capital above … Read More
Terry Smith – Top 10 Holdings – Latest 13F
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
Terry Smith: The Myth of “Cheap” Shares: Why Owning Good Companies Matters Most
In his book Investing For Growth. Terry Smith criticizes the obsession with “cheap” shares, arguing that owning shares in a good company is a much larger determinant of investment performance than whether the shares were cheap when you bought them. Here’s an excerpt from the book: What has continued to … Read More
Terry Smith: The High Cost of Missing The Market’s Best Days: A Lesson in Market Timing
In his book Investing for Growth, Terry Smith discusses the challenges of market timing and the impact it can have on investment returns. Missing just a few of the best days in the market can significantly reduce returns. Here’s an excerpt from the book: It is not hard to see … Read More
Terry Smith: Portfolio Concentration Rules: Why Fund Managers Have to Sell Stocks They Like
In this interview with medirectalk, Terry Smith discusses the portfolio concentration rules that fund managers have to follow. These rules limit the amount of money that can be invested in any one company or sector. Smith says that he sometimes has to sell stocks that he likes because of these … Read More
Terry Smith – Top 10 Holdings – Latest 13F
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
Terry Smith: Focus On Fundamentals, Forget Macro
In his latest Fundsmith semi-annual letter, Terry Smith reminds investors to focus on fundamentals and forget macro. Here’s an excerpt from the letter: Smith: To sum up, conditions are tougher and our companies are mostly having to cope with slower revenue growth and/or higher input costs. However, that’s what happens … Read More