Fundsmith....New Holding

[flyer61]

One more......Experian

[ADrunkenMarcus]

Seeking Alpha 30 Oct 20......40 per cent of the world toothpaste market is some moat..

Colgate-Palmolive (NYSE:CL) reports organic growth increased 7.5% vs. +3.9% consensus.

You can make a case:

41.8 percent average ten-year ROCE;
27.5 percent ditto CROIC;
24.3 percent ditto Operating Margin;
7.2 percent CAGR dividend per share.

I have to say, growth forecasts are not brilliant - earnings per share forecast up 7.8 percent in 2020, 5.7 percent in 2021 and 7 percent in 2022 and dividend growth lagging at 3.6-3.9 percent in each of those years as the payout ratio comes down.

Earnings forecast to grow ahead of turnover, showing margin expansion. However, free cash flow growth forecast to lag earnings. Nonetheless, a current free cash flow yield of 4 percent isn't too bad.

Best wishes

Mark

[marathonman365]

According to the factsheets, Colgate was bought in the Sustainable fund in September and then another new holding (probably the same as the main fund) was added to the Sustainable fund in October.

My money is on either Coca Cola or Kimberley Clark.

[tikunetih]

According to the factsheets, Colgate was bought in the Sustainable fund in September

Doh - I'd forgotten all about that fund! The SEC filing now makes sense...

My money is on either Coca Cola or Kimberley Clark.

Kimberley Clark seems another very solid suggestion.

[flyer61]

Kimberley Clark, Coca Cola and Colgate all fall into his sphere for sure. Which has the biggest growth runway going forward? Is it toothpaste penetration into Asia/Africa or an increase in the use of tissues/wipes. Is it that he likes the business decisions being made at KO. It is interesting that each of these Companies products are consumed by vast numbers of the planet everyday and probably for many decades to come. None seem staggeringly expensive at the moment.

Own KMB.

[Adamski]

I hold some FS in my portfolio (c.5%). Noticed that it has been under-performing its benchmark recently, versus global large cap. Particularly last month and last 3 months. Not hung up on short term movements. Obviously this is a sterling performer, an out-performer by any measurement over 10 years. However wonder what issues, holdings have cause this short term under-performance re benchmark? Thanks

[ReallyVeryFoolish]

I hold some FS in my portfolio (c.5%). Noticed that it has been under-performing its benchmark recently, versus global large cap. Particularly last month and last 3 months. Not hung up on short term movements. Obviously this is a sterling performer, an out-performer by any measurement over 10 years. However wonder what issues, holdings have cause this short term under-performance re benchmark? Thanks

Possibly because it is underweight in the type of stocks that led the market recently? For example, Smith has nothing good to say about Apple or Amazon for instance. He has been warming recently to Alphabet (Google) though. He does hold Facebook and Microsoft.

RVF

[flyer61]

Fundsmith is not the 'market' but a collection of Businesses selected on strict criteria.

It is unhedged, currency effects can have an impact on the funds sterling value.

[smicker]

Zoetis bought in sustainable fund

[flyer61]

Still none the wiser with the December update.

[scrumpyjack]

Fundsmith is not the 'market' but a collection of Businesses selected on strict criteria.

It is unhedged, currency effects can have an impact on the funds sterling value.

Given that sterling has for many many decades been a consistently weak currency, if I held Fundsmith I would certainly not want it hedged

[marathonman365]

December’s factsheet shows that November’s new purchase was LVMH.

[ReallyVeryFoolish]

December’s factsheet shows that November’s new purchase was LVMH.

Funny thing, it seems I can only find factsheets up to end of November on the fund website?

RVF

[flyer61]

LOL marathonman365 - you are right. Thanks! RVF in the search facility type December 2020 that should do the trick.

What do we think of LVMH....my wife likes them

[nmdhqbc]

December’s factsheet shows that November’s new purchase was LVMH.

Funny thing, it seems I can only find factsheets up to end of November on the fund website?

RVF

seems like a glitch on their website. This page shows Nov 2020 info...
https://www.fundsmith.co.uk/fund-factsheet
But if you scroll down to the bottom to the "archive" factsheets there's a link to Dec20...
https://www.fundsmith.co.uk/docs/defaul ... f?sfvrsn=4