ReallyVeryFoolish wrote:For those interested in this fund, Terry Smith's annual letter to investors is now available on the Fundsmith website.
Thanks RVF, link below:
https://www.fundsmith.co.uk/docs/defaul ... f?sfvrsn=4
Thanks to bruncher,niord,gvonge,Shelford,GrahamPlatt, for Donating to support the site
ReallyVeryFoolish wrote:For those interested in this fund, Terry Smith's annual letter to investors is now available on the Fundsmith website.
Adamski wrote:The one year return is 12.2% less OCF of 0.95% = 11.2%, which is slightly lower than my tracker Fidelity Index World 11.4% - 0.12% = 11.3%.
Adamski wrote:but how long do you tolerate underpreformance before doing something, one year, two, three?.
ReallyVeryFoolish wrote:I have a similar situation. But what do you buy if you sell Fundsmith? A serious question. Since in the last year to Friday just gone it has returned a little over 25 per cent. Not to be passed over lightly.
ReallyVeryFoolish wrote:AWOL wrote:I have a similar situation. But what do you buy if you sell Fundsmith? A serious question. Since in the last year to Friday just gone it has returned a little over 25 per cent. Not to be passed over lightly.
RVF
ReallyVeryFoolish wrote:AWOL wrote:I have also been an investor since almost the beginning and agree with the last couple of posts. When Fundsmith launched quality shares were cheap and neglected and he had clearly seen a good entry point. They are no longer cheap and neglected. I still have a large holding but I think I will scale back not because the management has gone if the boil, I see no sign of that, it has been excellent, but because other factors will have their day. I don't have any prophetic ability but I do wonder how long value can shine for. I think it will do well when the world's economy picks up being that I don't know. Younger members may not remember that value dominated for a long time and growth funds offered poor returns based on their part performance.
Has the tide turned?
I have a similar situation. But what do you buy if you sell Fundsmith? A serious question. Since in the last year to Friday just gone it has returned a little over 25 per cent. Not to be passed over lightly.
RVF
ReallyVeryFoolish wrote:I have a similar situation. But what do you buy if you sell Fundsmith? A serious question. Since in the last year to Friday just gone it has returned a little over 25 per cent. Not to be passed over lightly.
RVF
06/07/2021
Epic Change
IMI 47.12%
BT.A 44.54%
KGF 37.43%
LLOY 27.44%
AV. 27.09%
MARS 24.80% (Now 10.85%)
ReallyVeryFoolish wrote:Fundsmith has averaged something like 18 or 19% (I haven't checked recently but it's of that order) per annum for almost 11 years with tolerable volatility. How many of those stocks did that? (None of mine).
ReallyVeryFoolish wrote:Well done on some excellent stock picking. Something I generally sub-contract to managers such as Smith or Yiu at Blue Whale. I do hold some stocks, but by far my best buy has been Fundsmith. I am amongst the world's worst stock pickers. At least I do know that, which is a positive.
ReallyVeryFoolish wrote:Congratulations, naturally. I also have some shares that did more than Fundsmith over the last year.
However, Fundsmith has averaged something like 18 or 19% (I haven't checked recently but it's of that order) per annum for almost 11 years with tolerable volatility. How many of those stocks did that? (None of mine).
RVF
EPIC Share IRR Since
IMI IMI plc 44.78% 30-Mar-09
RIO Rio Tinto plc 34.87% 27-Apr-16
IMB Imperial Brands plc 21.31% 01-Oct-96
LLOY Lloyds Banking Group plc 17.02% 22-Dec-88
ADM Admiral Group plc 16.40% 05-Mar-14
AZN AstraZeneca plc 16.04% 01-Jun-93
DGE Diageo plc 15.77% 06-May-09
SMDS DS Smith plc 14.13% 08-Feb-07
NG. National Grid plc 13.68% 20-Oct-00
CPG Compass Group plc 12.95% 31-Jan-01
TATE Tate & Lyle plc 12.74% 21-Jul-99
RB. Reckitt Benckiser Group plc 12.47% 21-Mar-11
LGEN Legal & General Group plc 11.55% 14-Jun-16
ULVR Unilever plc 11.10% 19-Feb-10
BA. BAe Systems plc 11.02% 26-Nov-99
SGRO Segro plc 10.30% 04-Sep-07
SSE Scottish & Southern Energy plc 10.28% 28-Sep-10
UU. United Utilities Group plc 10.23% 09-Aug-01
BT.A BT Group plc 10.16% 28-Nov-84
PHP Primary Health Properties plc 9.44% 25-Mar-20
BP. BP plc 9.30% 09-Nov-79
BATS British American Tobacco plc 8.70% 19-Feb-10
KGF Kingfisher plc 7.98% 04-Sep-07
BLT BHP Billiton plc 7.90% 19-Feb-10
GSK GlaxoSmithKline plc 7.17% 28-Sep-10
BLND British Land plc 5.94% 01-Oct-10
TSCO Tesco plc 5.87% 19-Jun-97
S32 South32 Ltd 5.79% 18-May-15
AV. Aviva plc 5.70% 26-Oct-10
VOD Vodafone Group plc 5.60% 16-Aug-06
PSON Pearson plc 5.21% 22-Oct-09
TW Taylor Wimpey plc 4.92% 30-Aug-05
RDSB Royal Dutch Shell plc B 4.51% 07-Jun-06
MKS Marks & Spencer plc 4.29% 09-Feb-70
MARS Marstons plc 2.92% 17-Feb-11
IGG IG Group Holdings plc -5.29% 29-Dec-20
Median 10.20%
simoan wrote:What utterly ridiculous performance comparisons are being made on this thread! You cannot meaningfully compare the CAGR returns of your best performing individual shares to the performance of a fund, like Fundsmith. I guarantee the overall CAGR of Fundsmith will blow away the performance of the portfolios that contain these shares.
simoan wrote:What utterly ridiculous performance comparisons are being made on this thread! You cannot meaningfully compare the CAGR returns of your best performing individual shares to the performance of a fund, like Fundsmith.
tjh290633 wrote:Since you ask, here are the IRR figures for my portfolio, since the dates indicated.:EPIC Share IRR Since
IMI IMI plc 44.78% 30-Mar-09
RIO Rio Tinto plc 34.87% 27-Apr-16
IMB Imperial Brands plc 21.31% 01-Oct-96
LLOY Lloyds Banking Group plc 17.02% 22-Dec-88
[tablulated data removed - to shorten the post]
MKS Marks & Spencer plc 4.29% 09-Feb-70
MARS Marstons plc 2.92% 17-Feb-11
IGG IG Group Holdings plc -5.29% 29-Dec-20
Median 10.20%
I'm not claiming anything special, but pointing out that Fundsmith is not unique.
TJH
Aminatidi wrote:Is there a situation where people think Fundsmith could go terribly wrong?
I don't mean lag behind the index a bit I mean literally go terribly badly wrong.
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