Terry Smith: “The problem is most people don’t read the accounts”
42,918
Published 2021-12-01
In this interview, Smith tells Mary McDougall how he analyses and selects companies, how the rise of software has folded into his investment thinking and what trends he thinks currently look most promising.
He also talks about the extent to which fund size is a challenge going forward, and what spurred him to buy Amazon (US:AMZN) this summer.
Fundsmith Equity Fund has delivered an annualised total return of 18.4 per cent since its inception in November 2010, compared with 12.8 per cent for its benchmark MSCI World Index. It had assets under management of £27.9bn on 30 November 2021.
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All Comments (21)
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Just recently found out about Terry Smith and I am glad I did. He provides such clear direction and relatable investment advice that makes it easier for persons to understand companies and investments. Really enjoy listening to his advice and his investment principles are so simple and straightforward. More people need to hear about Terry Smith.
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Superb interview. He talks so much common sense.
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Straight talking and no nonsense. Terry Smith was the one that inspired me to launch my fund.
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Terry is always great to listen to, and each time I hear him speak it makes me more confident holding Fundsmith Equity.
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Terry is a fantastic investor. So glad I can learn from him, and even emulate his investments
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As always interesting listening. Thank you Mr Smith and IC.
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I find Terry to be consistent and credible. He does a great job and when you include dealing costs he is excellent value. Others charge lower headline fees but then cost too much because of trading charges on too much churn. Overall I have been very happy that I found him to look after my money.
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Terrys opinions on tangible light business having high PE ratios was really insighfull. It brings to mind Nick Trains comments about what he considered to be the most important consideration when making a new position, that is "What will be the effect of advanced technology on the business"
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Amazing interview
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In Terry we trust
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A very very sharp man.
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nice Interview but timestamps would double the value of this podcast
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Great!
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Thx
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Yap, I like his reasonablility too! Though we still have to see how this fund weathers the storm of a major market correction.
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I'm afraid it's recent performance is nothing to write home about. But to be fair all stocks are being marked down in mid 2022
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Why do all Terry Smith interviews have horrible sound?
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Mary, from her voice, appears to be on the edge
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The sound is probably poor because Terry is in Mauritius. His fund has not done particularly well recently, his charges don't reduce as the funds get bigger, and unlike JP Morgan and Baillie Gifford, they pay no dividends. The latest news is that he will bank a minimum £150 million this year.
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This guy could just be randomly lucky. Funds only been around since 2010
