Tag Archive

In this article by Trustnet, Terry Smith explains why CEOs have one major advantage over most fund managers. Here’s an excerpt from the article: The Fundsmith Equity manager says that as a long-term investor, he is in effect sub-contracting to the CEOs of the companies he invests in. Terry Smith … Read More

Fundsmith has just released its latest factsheet in which Terry Smith outlines his six criteria for finding exceptional businesses. Also included is the optimum number of stocks to hold. Here’s an excerpt from the factsheet: The Company will invest in equities on a global basis. The Company’s approach is 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

Earlier this year in his Annual Shareholder Meeting, Terry Smith was asked about his thoughts on investing in Bitcoin. Here’s an excerpt from the meeting: Smith: When I think about investing in Bitcoin, it’s not investing it’s speculating. It’s playing greater fool theory at the moment. Can I buy some … Read More

In Terry Smith’s book – Investing for Growth, he discusses how he selects companies that will perform well in the future. Here’s an excerpt from the book: Even if they were not handicapped by blinkers in predicting the outcome of events, those who wish to rely upon forecasts would still … Read More

In his recent Fundsmith Annual Shareholders’ Meeting, Terry Smith discussed market timing, and even if you had perfect foresight it would still be impossible to predict how the market would react to events. Here’s an excerpt from that meeting: Smith: An awful lot of people talk about so called ‘market … Read More

In a recent email interview with Business Insider, Terry Smith provided twelve book recommendations that every investor should read: Berkshire Hathaway’s Annual Shareholder Letters The Warren Buffett Way by Robert Hagstrom Liar’s Poker, The Big Short, Flash Boys and Moneyball – All by Michael Lewis The Predators Ball by Connie Brook Hawkwood: Diabolical Englishman by … Read More

In his 2020 Annual Letter, Terry Smith makes a great observation regarding todays ‘technology’ companies saying, “I would suggest that the secular drivers of these businesses have some distinct differences and that their prospects are not governed by a single factor — technology. This one size fits all label does … Read More

In his 2016 Annual Shareholder meeting, Fundsmith’s Terry Smith explained his strategy of only buying good companies, trying not to overpay, and then doing nothing. Smith also discussed the industries that investors should avoid. Here’s an excerpt from that meeting: We only regard approximately seventy companies in the world as … Read More

In his latest interview with Fund Insiders Forum De Tijd & L’Echo, Terry Smith discusses a number of topics including why the ideal company to invest in doesn’t pay a dividend. Here’s an excerpt from the interview: Question: How important is this dividend yield for you and your selection of … Read More

In this interview with Barclays Stockbrokers TV, Terry Smith discussed the importance of having a very long-term horizon, ignoring macro, and why avoiding losers is more important than picking winners. Here’s an excerpt from the interview: Smith: My definition of long-term investing is forever basically. I seek to invest in really … Read More

In this interview with Morningstar Europe, Terry Smith discusses why he focuses on good companies that earn high returns on capital, rather than buying bad companies and waiting for a catalyst. Here’s an excerpt from the interview: Smith: What we are screening for is to get rid of bad companies. … Read More

Here’s a great interview with Fundsmith’s Terry Smith at Money Matters in which he discusses how good stocks will ‘talk’ to you if you do extensive analysis. Here’s an excerpt from that interview: Question: In a broadly efficient market how can these anomalies arise, I ask? Or, to put it another … Read More

One of the investors we watch very closely here at TAM is Terry Smith, CEO at Fundsmith. We’ve recently been reading through the Fundsmith ‘Owners Manual’ which is very similar to the Berkshire Owners Manual. One of the sections in the manual covers Smith’s fourteen filters for purchasing a great … Read More

In his 2010 Fundsmith Shareholder Letter Terry Smith discussed why investing in stocks is a claim on a share of the cash flow produced by a business, not a sophisticated game of pass the parcel to greater fools saying: What we can say with a high degree of certainty is … Read More

Here’s a great presentation by Fundsmith’s Terry Smith in which he illustrates how investors can generate excellent returns by focusing on high quality businesses, which may be trading at high multiples. Smith had the following to say about investors that focus solely on cheap prices: I wish I’d kept a … Read More