Lindsell Train Global Equity Vs Fundsmith Equity

[Quint]

Just had a quick look on the HL website and Lindsell Train Global Equity has slightly outperformed Fundsmith Equity over 1, 3 and 5 years.

Lindsell train yields 0.8% and takes charges (0.54% with HL discount) from capital, Fundsmith yields 0.97% takes charges (0.95%) from income.

Funny you only ever really hear people mention Fundsmith though. I think Lindsell Train Global Equity is under rated personally.

I hold both in My SIPP and ISA and pleased to see no overlap in the top 10 holdings.

Not that it means that much but nice to see two good growth funds that are different.

[MaraMan]

I agree and have recently added LTGE to my longstanding and fairly significant holding in Fundsmith Equity. As you say the top holdings don't overlap despite some similarity in strategy. I like the way both of them are run, however I remain sceptical about Fundsmith building a large holding in Facebook earlier this year, but I am sure they know more about it than I do. I just don't like it or use it and see my kids moving away from it.

MM

[Aminatidi]

I'm also tempted by Evenlode Global Income which, in spite of the name, seems to hold a lot of good quality with a buy and hold theme.

[Quint]

I'm also tempted by Evenlode Global Income which, in spite of the name, seems to hold a lot of good quality with a buy and hold theme.

Not one I am familiar with, but will check it out.

[Quint]

I agree and have recently added LTGE to my longstanding and fairly significant holding in Fundsmith Equity. As you say the top holdings don't overlap despite some similarity in strategy. I like the way both of them are run, however I remain sceptical about Fundsmith building a large holding in Facebook earlier this year, but I am sure they know more about it than I do. I just don't like it or use it and see my kids moving away from it.

MM

Yes, for a fund that claims to only buy quality, Facebook is not one I thought they would add. Poor ethics, management and oversight. Too much reliance on one man. Also I think it has reached its zenith some time ago.

Hopefully Terry is right and I am wrong.

[albinosmurf]

I agree and have recently added LTGE to my longstanding and fairly significant holding in Fundsmith Equity. As you say the top holdings don't overlap despite some similarity in strategy. I like the way both of them are run, however I remain sceptical about Fundsmith building a large holding in Facebook earlier this year, but I am sure they know more about it than I do. I just don't like it or use it and see my kids moving away from it.

MM

Yes, for a fund that claims to only buy quality, Facebook is not one I thought they would add. Poor ethics, management and oversight. Too much reliance on one man. Also I think it has reached its zenith some time ago.

Hopefully Terry is right and I am wrong.

Was sceptical too but I think they are increasing their profits all the time and have yet to monetise some of the things they have bought like whatsapp. I may be wrong on that though.

[MaraMan]

Good question, and to be honest I don't know

I do think it shows how fickle social media use is and I not would bet on the likes of Terry Smith guessing what will stand the test of time. Given that I just don't see how it fits in the Fundsmith universe.

[StOmer]

Commentators on CNBC today discussing Facebook, Apple, Amazon etc (FAANGS). Consensus appeared to be that Facebook was a good stock to hold, they own Instagram plus via Facebook they are able targeted ads by geolocations. This is something that no one else can currently do on the same scale. Apple moved into 'bear' territory but the stock to get out of was apparently Netflix.

[MaraMan]

Although I am a very happy holder of a sizable, by my standards, chunk of Amazon shares, I would not expect to see these in Fundsmith, in the same way I am surprised that Facebook is in there. This does not mean that they are neccessarily bad investments, although I retain my doubts about Zuckerberg. Today there has been yet another damning story in the New York Times about him https://www.nytimes.com/2018/11/14/tech ... ule=inline

I suspect that their targetting of advertising has been misused in the past.

Zuckerberg being Chairman and CEO is very problematic I feel and although Jeff Bezos holds the same roles in Amazon I am less concerned, although I would be much more comfortable with the roles being split.

I guess I just don't much like Facebook, but I have to bow to Terry Smith's record in backing winners and hope that he is right and I am wrong. I regard my holding in Fundsmith as core and will hold indefinitely.