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: Investors Just Don’t Read The Accounts
In this interview with the Investors’ Chronicle, Terry Smith provides a great illustration of investors not reading the accounts of the companies they’re investing in. Here’s a excerpt from the interview: When we were established ten years ago we were looking through our list of potential investee companies and one … Read More
Terry Smith: We’re The Groucho Marx of Investment
In this Fundsmith presentation, Terry Smith explains his Groucho Marx style of investment. Here’s an excerpt from the presentation: Ok last point on this. We’re the Groucho Marx of investment. We don’t invest… Groucho Marx famously would never join any club that would not have him as a member. We … Read More
Terry Smith: Investors Miss The Most Important Thing By Focusing On Whether A Company Is Cheap Or Expensive
In his recent presentation with Canaccord Genuity Wealth Management, Terry Smith discusses why investors miss the most important thing by focusing on whether a company is cheap or expensive. Here’s an excerpt from the presentation: In his recent presentation with Canaccord Genuity Wealth Management, Terry Smith discusses why investors miss … Read More
Terry Smith: How To Ensure Share BuyBacks Add Value For Shareholders
In his book, Investing For Growth, Terry Smith discusses how to ensure share buybacks add value for shareholders. Here’s an excerpt from the book: Simply by executing a share buyback rather than paying out dividends, companies can inflate their earnings per share (EPS) and are almost universally seen to have … Read More
Terry Smith: Investing Lessons From The Tour de France
In his book – Investing For Growth, Terry Smith discusses investing lessons from the Tour de France. Here’s an excerpt from the book: Searching for an investment strategy or fund manager who can outperform the market in all reporting periods and varying market conditions is as pointless as trying to … Read More
Terry Smith: Investors Should Reconsider Using The Bond Rate As A Base Rate For Returns
At a recent event organised by Jupiter Asset Management, Terry Smith suggests investors should reconsider using the bond rate as a base rate for returns. Here’s an excerpt from the event: Critics of these defensive stocks argue they have become too expensive. But while Smith concedes that the sort of … Read More
Terry Smith: CEOs Are Better Investors Than Most Fund Managers
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
Terry Smith: 6 Criteria For Finding Exceptional Businesses
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
Terry Smith Top 10 Holdings (Q2 2021)
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: Investing In Bitcoin Is Greater Fool Theory
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
Terry Smith: How To Select Companies That Will Perform Well In The Future
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
Terry Smith Top 10 Holdings (Q4 2020)
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: Even If You Had Perfect Foresight You Could Not Predict The Market’s Reaction
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
Terry Smith: 12 Books That Every Investor Should Read
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
Terry Smith: Investors Should Focus On The Secular Drivers Of ‘Technology’ Companies When Evaluating Them
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
Terry Smith Top 10 Holdings (Q3 2020)
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: Own Boring & Stable, And Avoid These Industries…
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
Terry Smith: The Ideal Company Doesn’t Pay A Dividend
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
Terry Smith: It’s More Important To Avoid Losers Than It Is To Pick Winners
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