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Old 09.12.2019, 11:08
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Phil_MCR Phil_MCR is offline
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Re: Worst Case scenario for Fundsmith owners

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So plenty of us on here are strong advocates for investing in FS myself included. We're in deep & I often take the opportunity to illustrate the gains to my family vs. any other potential investment.

Recently I've been getting some reasonably cautious pushback in the form of "what if" questions.

What if FS goes bust (you get the jist of the pushback), what if Terry Smith dies, what if something happens that no one could have predicted? Black Swan event specific to FS & not the wider market. The questions are coming from a place far removed from an investing mindset but it got me thinking about: What am I not thinking about here? What are the risks of holding FS? What is the worst case scenario as a FS holder?

The exposure to the market is understood & that risk is assumed knowingly but what about FS itself - what are the risks, insurances if any & how to mitigate?

I assume many investors on here have taken a deeper dive into this topic than me & I'd love to hear your thoughts, particularly on unmitigated FS specific risks & their consequences.

Thanks Folks.
Worst case scenario: Terry Smith turns out to be a Madoff and you lose all your money.

I keep <10% of funds in FS.
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