Smithson: new Fundsmith Investment Trust to launch

[tikunetih]

Mission accomplished.

[simoan]

Si is a bit like a dog with a bone. I am simply saying that we are all entitled to our opinions. I think half the world is wrong but never mind. No more on this.

Dod

I'm not sure why you continue to be so rude. No-one is saying people are not entitled to their opinions but they are only entitled to air them whilst refraining from calling others names according to the Lemonfool posting guidelines. Unless you consider yourself above the rules?

As you can tell I don't like being called "odd" or a "dog with a bone". If any behaviour is odd, it's turning down the offer of £11 for every tenner in your wallet. One of the strongest forces in investment is reversion to the mean and the current premium of Smithson IT is simply not justified - it's a bubble. I'm really struggling to find a good reason to not sell more of my holding if this persists. It wouldn't be so funny if I hadn't put the proceeds of my initial Smithson sale into the AJ Bell IPO - an investment I plan to hold for a very long time!

Si

[ADrunkenMarcus]

The last factsheet reveals Smithson do hold Spirax Sarco Engineering.

Over time, the 'top ten' and then the five positive and negative contributors may shine some light on ID-ing the companies in the portfolio - if not their individual proportions of it.

Best wishes

Mark.

[simoan]

The last factsheet reveals Smithson do hold Spirax Sarco Engineering.

Over time, the 'top ten' and then the five positive and negative contributors may shine some light on ID-ing the companies in the portfolio - if not their individual proportions of it.

Best wishes

Mark.

Yep. Now we know 20 out of the 29 holdings. There's no doubt there are some interesting companies in there.

All the best, Si

[Dod101]

It is best for us holders of Smithson just to ignore it pro tem and await the first Annual Report. Do we know the year end of this Trust?

Personally I do not know any of the holdings (except apparently Spirax) nor do I at this stage care. I bought Smithson so that Terry Smith and his team would look after my investment and I am sure they are doing that. As a certain pyad says zzz!

Dod

[TheMotorcycleBoy]

I don't have any SSON, but I have been sniffing around it's holdings (and that of "UK Buffetology") for new ideas for additions to our portfolio. I recently note that Halma (HLMA) is there. Now whilst this may be a cash-generating FTSE-100 darling I determined that it could also be construed as a pricey way of buying a lot of goodwill and intangibles.

Given that I'm new to this game, perhaps this is not that necessarily all that bad (?).

I created this content by way of a discussion:

viewtopic.php?f=33&t=15556
viewtopic.php?p=191536#p191536

Matt

[ADrunkenMarcus]

Personally I do not know any of the holdings (except apparently Spirax)

I hold some of the 'investable' universe directly: Spirax Sarco Engineering (2015), Domino's Pizza Group (2010), Fevertree (2017), Diploma (2012) for starters. Spirax is one of those hidden gems and recently promoted to the FTSE 100, even though the market cap is still only £4.5 billion or so. And I hold Smithson which is now 25% of my SIPP. All bought on a long term 'buy, hold and reap the benefits of compounding' basis.

Best wishes

Mark.

[simoan]

It is best for us holders of Smithson just to ignore it pro tem and await the first Annual Report. Do we know the year end of this Trust?

Personally I do not know any of the holdings (except apparently Spirax) nor do I at this stage care. I bought Smithson so that Terry Smith and his team would look after my investment and I am sure they are doing that. As a certain pyad says zzz!

Dod

I think we're all well aware of your approach by now. However, some people are more active investors and we should be able to discuss the holdings without continual carping from the sidelines. If someone is not interested in the trust, I have no idea why they even bother reading this thread tbh. Believe it or not, some of us are successful investors who don't (and never have) followed Pyads ignorance approach.

From my own perspective, I have spare cash to invest, some of it in USD accounts, and so I am looking for any interesting US growth companies of which I was not previously aware for direct investment. Each to their own and all that.

Si

[Dod101]

I assure you that I dislike pyad's approach as well, especially Strategic Ignorance which is just silly to me, but in the case of a new IPO like Smithson I feel it has to be left alone for at least a couple of years. It will take that time for it to get established and for the managers to make their mark.

Absolutely nothing wrong with picking over the investments to look for pointers for direct investment though.

Dod

[TheMotorcycleBoy]

From my own perspective, I have spare cash to invest, some of it in USD accounts, and so I am looking for any interesting US growth companies of which I was not previously aware for direct investment.

FWIW if I were in your position Si, I'd probably look at their legal wacky-backy industries......

What about?

Aphria Inc
NYSE: APHA

Just don't get high on your returns

[simoan]

FWIW if I were in your position Si, I'd probably look at their legal wacky-backy industries......

What about?

Aphria Inc
NYSE: APHA

Just don't get high on your returns

Si's first law of investing states: "Never invest in anything that is so obviously subject to government regulation". I couldn't be less interested in cannabis or investments based on it. I don't believe Smithson have invested in any companies involved in this area and it doesn't strike me as the kind of thing Terry Smith would tolerate either.

Si

[Pendrainllwyn]

and it doesn't strike me as the kind of thing Terry Smith would tolerate either.

I am not arguing for an investment in Tobacco having never invested myself but I recall in the video of last year's Fundsmith Equity Fund annual meeting Terry spoke about the benefits of investing in regulated industries like tobacco. One of his arguments went along the lines of advertising restrictions made it much harder for new entrants to enter the market.

A quick glance at the latest factsheet shows Philip Morris is a top 10 holding (#10) for the Fundsmith Equity Fund.

Pendrainllwyn

[simoan]

and it doesn't strike me as the kind of thing Terry Smith would tolerate either.

I am not arguing for an investment in Tobacco having never invested myself but I recall in the video of last year's Fundsmith Equity Fund annual meeting Terry spoke about the benefits of investing in regulated industries like tobacco. One of his arguments went along the lines of advertising restrictions made it much harder for new entrants to enter the market.

A quick glance at the latest factsheet shows Philip Morris is a top 10 holding (#10) for the Fundsmith Equity Fund.

Pendrainllwyn

Well, judging by the share price reaction of the tobacco companies to the changing regulatory environment in the US, I'd have to say that I'm right and he's wrong! And the way things are going Philip Morris will not be in the Top 10 holdings next month...

All the best, Si

[Pendrainllwyn]

You may well be! Let me know when I can invest in FundSimoan!

Pendrainllwyn

[Backache]

and it doesn't strike me as the kind of thing Terry Smith would tolerate either.

I am not arguing for an investment in Tobacco having never invested myself but I recall in the video of last year's Fundsmith Equity Fund annual meeting Terry spoke about the benefits of investing in regulated industries like tobacco. One of his arguments went along the lines of advertising restrictions made it much harder for new entrants to enter the market.

A quick glance at the latest factsheet shows Philip Morris is a top 10 holding (#10) for the Fundsmith Equity Fund.

Pendrainllwyn

Well, judging by the share price reaction of the tobacco companies to the changing regulatory environment in the US, I'd have to say that I'm right and he's wrong! And the way things are going Philip Morris will not be in the Top 10 holdings next month...

All the best, Si

I don't know what the share price of Phillip Morris is doing but one of the things he said at the last meeting from memory is that although it is based in the US all its sales are outwith the US.

[simoan]

I am not arguing for an investment in Tobacco having never invested myself but I recall in the video of last year's Fundsmith Equity Fund annual meeting Terry spoke about the benefits of investing in regulated industries like tobacco. One of his arguments went along the lines of advertising restrictions made it much harder for new entrants to enter the market.

A quick glance at the latest factsheet shows Philip Morris is a top 10 holding (#10) for the Fundsmith Equity Fund.

Pendrainllwyn

Well, judging by the share price reaction of the tobacco companies to the changing regulatory environment in the US, I'd have to say that I'm right and he's wrong! And the way things are going Philip Morris will not be in the Top 10 holdings next month...

All the best, Si

I don't know what the share price of Phillip Morris is doing but one of the things he said at the last meeting from memory is that although it is based in the US all its sales are outwith the US.

I used to hold Philip Morris personally so I'm aware that it does not have exposure to the US market. The US business was spun off as Altria. I'm sorry for any confusion but there was no intended connection between my two sentences! Philip Morris is tanking if you must know but this is more to do with the business in Japan and concerns about the dividend which is one of it's main attractions for investors (other than Terry Smith, of course).

All the best, Si

[Backache]

I used to hold Philip Morris personally so I'm aware that it does not have exposure to the US market. The US business was spun off as Altria. I'm sorry for any confusion but there was no intended connection between my two sentences! Philip Morris is tanking if you must know but this is more to do with the business in Japan and concerns about the dividend which is one of it's main attractions for investors (other than Terry Smith, of course).

All the best, Si

Fair point

[Lootman]

I used to hold Philip Morris personally so I'm aware that it does not have exposure to the US market. The US business was spun off as Altria. I'm sorry for any confusion but there was no intended connection between my two sentences! Philip Morris is tanking if you must know but this is more to do with the business in Japan and concerns about the dividend which is one of it's main attractions for investors (other than Terry Smith, of course).

Yes, what is now known as Phillip Morris is the hived off non-US businesses of the former Phillip Morris. Its symbol is PM and it's really just a vehicle for the international sale of various tobacco brands. A lot of that business is in emerging markets where there isn't the same stigma about smoking as in the West. I believe that you can still smoke on domestic flights in China, for instance.

Whilst Altria is the old Phillip Morris US tobacco business. The food division was also sold off. The symbol is MO. It has been trying to recapture growth by buying a vaping company and dabbling in cannabis stocks.

Both are fairly typical high yield shares i.e. miserable capital performance and buoyed mostly by yields in the range of 5% to 7%. Neither is attractive in my view and I sold both some time ago. Both are down over 2% today, for instance.

[simoan]

Both are fairly typical high yield shares i.e. miserable capital performance and buoyed mostly by yields in the range of 5% to 7%. Neither is attractive in my view and I sold both some time ago. Both are down over 2% today, for instance.

Well, a single day's negative share price movement is obviously meaningless in the grand scheme of things. Actually, my contrarian side is quite attracted to Philip Morris again at these levels i.e. $60-70 but not because of the dividend, which is uncovered by earnings.

All the best, Si

[flyer61]

Have bought two directly so far. Sabre and Christian Hansen Holdings. The next I will purchase is Masimo. http://www.masimo.co.uk/ (the UK website, however it is a US company and traded there.) Masimo is in an area with huge growth potential. Shares are not cheap on most metrics but looking back they have always been 'expensive', so will take the plunge.

Long term I feel Smithson will be a winner.