The Lemon Fool

flyer61 wrote: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

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.

marathonman365 wrote: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...

marathonman365 wrote:My money is on either Coca Cola or Kimberley Clark.

Kimberley Clark seems another very solid suggestion.

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.

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

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.

Zoetis bought in sustainable fund

Still none the wiser with the December update.

flyer61 wrote: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

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

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

ReallyVeryFoolish wrote:

marathonman365 wrote: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

Church and Dwight bought in the main fund, I guess to replace Reckitts which was sold out of in November

The previous purchase was only for the Sustainable fund

ReallyVeryFoolish wrote:

marathonman365 wrote:The previous purchase was only for the Sustainable fund

Ah, thanks. That explains it. Cheers.

RVF

No mention in the latest fact sheet of a new buy / sell for the main fund?

Though clearly a favourite with recent weakness and a buy in the sustainable fund.

Guessing that this info has been gleaned from the 13-F filing Fundsmith has to make for its US holdings.
https://sec.report/Document/0001520023-21-000005/

The latest one was filed last week and shows the holdings as of the end of December. It's for Fundsmith LLP so I think it lists any US holdings owned by the main fund, the SICAV EU-based version of the main fund, the Sustainable fund, and Smithson.

Church & Dwight is shown in the December filing but not the September one. And Fundsmith's holding was valued at $491m, which is too large for the Sustainable fund or Smithson.

Also spotted by this guy it seems: https://twitter.com/creandocartera/stat ... 3417523203

Tigger wrote:Guessing that this info has been gleaned from the 13-F filing Fundsmith has to make for its US holdings.
https://sec.report/Document/0001520023-21-000005/

The latest one was filed last week and shows the holdings as of the end of December. It's for Fundsmith LLP so I think it lists any US holdings owned by the main fund, the SICAV EU-based version of the main fund, the Sustainable fund, and Smithson.

Church & Dwight is shown in the December filing but not the September one. And Fundsmith's holding was valued at $491m, which is too large for the Sustainable fund or Smithson.

Also spotted by this guy it seems: https://twitter.com/creandocartera/stat ... 3417523203

Thanks Tigger - good spot! Must have started building this quickly in Feb

I've bought more Fundsmith today.

Looking back at previous factsheets, the Church and Dwight holding was initiated in October.

Tigger wrote:Guessing that this info has been gleaned from the 13-F filing Fundsmith has to make for its US holdings.
https://sec.report/Document/0001520023-21-000005/

The latest one was filed last week and shows the holdings as of the end of December. It's for Fundsmith LLP so I think it lists any US holdings owned by the main fund, the SICAV EU-based version of the main fund, the Sustainable fund, and Smithson.

Church & Dwight is shown in the December filing but not the September one. And Fundsmith's holding was valued at $491m, which is too large for the Sustainable fund or Smithson.

Also spotted by this guy it seems: https://twitter.com/creandocartera/stat ... 3417523203

Further confirmation from The Telegraph today

www.telegraph.co.uk/investing/shares/st ... wight/amp/