Tag Archive

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

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

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

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

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

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

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

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

Earlier this year, Terry Smith wrote an article for the Financial Times outlining his reasons for not investing in bank stocks, one of which included systemic risk. Here’s an excerpt from the article: Smith: Finally, surely there must be some good banks to invest in which are better than the … Read More

In his recent article titled – Why I never invest in bank shares, Terry Smith explains why he never invests in bank stocks. Here’s an excerpt from the article: Smith: That encompasses my long-standing reasons for avoiding bank shares but another has emerged in recent years – Fintech. What are … Read More

During his recent Annual Shareholder meeting, Terry Smith explained why you should invest in businesses that can be run by an idiot! Here’s an excerpt from the meeting: Smith; One of the things that we’ve tried to operate on as a mantra over the years which we didn’t invent because … 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

In his 2018 Annual Letter, Terry Smith discussed why you should stay invested in the stock market. Here’s an excerpt from the letter: Imagine a fund manager approached you with an offer for you to invest in a portfolio of high quality companies. You may quite like the strategy but … Read More

In this interview with AJ Bell, Terry Smith discussed where to find the great businesses of the future. Here’s an excerpt from the interview: Smith: The same place they came from in the past actually. I will go back once again, third time in one interview, to the Warren Buffett … Read More

In this recent edition of medirectalk, Terry Smith explained why most companies are not susceptible to reason. Here’s an excerpt from the interview: Terry Smith: Yes, I’ll elaborate. As my colleagues will attest I think if you speak to them this was one where I was very, very, very, close … Read More

In his recent 2022 Annual Letter, Terry Smith explained how sometimes good companies, with solid fundamentals, get taken down in a meltdown, together with their underperforming counterparts. Here’s an excerpt from the letter: Our highly valued and technology holdings did not fare as poorly as some of the companies which … Read More

In his latest Annual Letter, Terry Smith explains why tech companies should stop behaving as though money is free, and stick to their core business. Here’s an excerpt from the letter: However, as well as the lower valuations caused by higher rates, technology stocks are facing some fundamental headwinds. A … 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

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

In his recent interview with the Master Investors podcast, Terry Smith explained why we still haven’t reached the ‘capitulation phase’. Here’s an excerpt from the interview: Smith: I think there’s more to come, it’s just gut feel actually. As you said I’ve been doing this for quite a long time … Read More