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  #161  
Old 29.06.2021, 22:28
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Re: Question regarding Fundsmith

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I posted this on 3 July 2019 so within a week of 2 years ago!

Today I notice that my investment from 3 May 2013 has now quadrupled roughly 18.6 compound

3 May 2013 £1.554
29 June 2021 £6.2183
Long may it continue

Last edited by fatmanfilms; 29.06.2021 at 22:39. Reason: fixing date error in quote 2021 not 2012
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  #162  
Old 01.07.2021, 10:39
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Re: Question regarding Fundsmith

I started drip feeding into Fundsmith in early 2012...after reading an article in the Guardian ( that well known right-wing capitalist organ of misinformation) of all places.
As of today it has been the most sensible financial decision I have ever made, if it carries on as well as it has been performing over the last 9 years I will have a comfortable retirement.
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  #163  
Old 01.07.2021, 13:14
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Re: Question regarding Fundsmith

I have a similar experience. Similar to Porsche1909 in the past I had also hedged my bets between index fund and FS and have now ditched index fund

I would be absolutely delighted if FS could sustain 7% returns from here. Huge gains have come from Nasdaq stocks, even if they are quality stocks with high ROC there is surely a risk this is some kind of bubble(?) In any case I don’t see many better places to put my money than FS

Last edited by jim1; 01.07.2021 at 13:41.
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  #164  
Old 01.07.2021, 18:38
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Re: Question regarding Fundsmith

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I have a similar experience. Similar to Porsche1909 in the past I had also hedged my bets between index fund and FS and have now ditched index fund

I would be absolutely delighted if FS could sustain 7% returns from here. Huge gains have come from Nasdaq stocks, even if they are quality stocks with high ROC there is surely a risk this is some kind of bubble(?) In any case I don’t see many better places to put my money than FS
I'm going to try and get a 1:1 mix of

a) SMT or similar (ATT, EWI, Positive Change, Global Discovery, KPC), and

b) FS or similar (SSON, MSCI World quality)

I'm also keeping a bit of chinese tech separately as I think it's rather undervalued at the minute.

At the minute I have rather more of a), but I think quality is rather inexpensive at the minute by the standards of the broader market.
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  #165  
Old 01.07.2021, 21:14
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Re: Question regarding Fundsmith

Weirdly enough I take some investment advice from this thread.

I am responsible for my 8 yo British-Swiss grandson's investments.

I hope to dispose of my assets 7 years before HMRC attacks my estate/succession.

But how to plan for 60 years from now? If you use the MS Excel formula =VC(C53;C54;C55;C56) (French version, change VC to FV tor English and adjust the cell references as appropriate) you get £1.6 mn at 5% and £17 mn at 10% -- with a vicious "excess pension" tax accordingly. Maybe move to Switzerland before the pension tax accrues?

For the moment his SIPP is mainly in FS, SSON & L&G US Index and his VPT has also ATT, HANetf ICAV, Legal & General UCITS ETF and some SMT

Last edited by Caryl; 01.07.2021 at 21:57.
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  #166  
Old 01.07.2021, 21:28
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Re: Question regarding Fundsmith

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Weirdly enough I take some investment advice from this thread.

I am responsible for my 8 yo British-Swiss grandson's investments.

I hope to dispose of my assets 7 years before HMRC attacks my estate/succession.

But how to plan for 60 years from now? If you use the MS Excel formula =VC(C53;C54;C55;C56) (French version, change VC to FV tor English and adjust the cell references as appropriate) you get £1.6 mn at 5% and £17 mn -- with a vicious "excess pension" tax accordingly. Maybe move to Switzerland before the pension tax accrues?

For the moment his SIPP is mainly in FS, SSON & L&G US Index and his VPT has also ATT, HANetf ICAV, Legal & General UCITS ETF and some SMT
I think Fundsmith is the perfect investment with a 60 year horizon, it's a very simple strategy that can be followed by younger members of the team who have significant skin in the game. The 'youngest' FS manager Danial is now a partner in the management company, he joined at inception. Since Terry Smith is going to give the majority of his partnership shares to employees they will share £1-2 Billion, they won't be looking for a job elsewhere in a hurry.
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  #167  
Old 01.07.2021, 21:30
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Re: Question regarding Fundsmith

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Weirdly enough I take some investment advice from this thread.

I am responsible for my 8 yo British-Swiss grandson's investments.

I hope to dispose of my assets 7 years before HMRC attacks my estate/succession.

But how to plan for 60 years from now? If you use the MS Excel formula =VC(C53;C54;C55;C56) (French version, change VC to FV tor English and adjust the cell references as appropriate) you get £1.6 mn at 5% and £17 mn -- with a vicious "excess pension" tax accordingly. Maybe move to Switzerland before the pension tax accrues?

For the moment his SIPP is mainly in FS, SSON & L&G US Index and his VPT has also ATT, HANetf ICAV, Legal & General UCITS ETF and some SMT
Sounds like your grandson will be alright.
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  #168  
Old 01.07.2021, 21:38
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Re: Question regarding Fundsmith

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Sounds like your grandson will be alright.
Understatement in the extreme if IHT is sorted ahead of time!
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  #169  
Old 02.07.2021, 13:28
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Re: Question regarding Fundsmith

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Weirdly enough I take some investment advice from this thread.

I am responsible for my 8 yo British-Swiss grandson's investments.

I hope to dispose of my assets 7 years before HMRC attacks my estate/succession.

But how to plan for 60 years from now? If you use the MS Excel formula =VC(C53;C54;C55;C56) (French version, change VC to FV tor English and adjust the cell references as appropriate) you get £1.6 mn at 5% and £17 mn at 10% -- with a vicious "excess pension" tax accordingly. Maybe move to Switzerland before the pension tax accrues?

For the moment his SIPP is mainly in FS, SSON & L&G US Index and his VPT has also ATT, HANetf ICAV, Legal & General UCITS ETF and some SMT
£90k at 8 years old - nice!

I don't think you can plan *that* far ahead - you will need to rely on the next generation to be as competent as yourself. Sounds like your son is pretty switched on - would your daughter let him assist if stocks aren't her thing?

Last edited by HickvonFrick; 08.07.2021 at 16:04.
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  #170  
Old 08.07.2021, 22:05
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Re: Question regarding Fundsmith

I see the 12 month return on Fundsmith in CHF is an amazing 34.67%, quite something for a defensive fund.

The strength of the £ is amazing reducing the return to 22.77% for people who rely on GBP
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  #171  
Old 09.07.2021, 10:37
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Re: Question regarding Fundsmith

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I see the 12 month return on Fundsmith in CHF is an amazing 34.67%, quite something for a defensive fund.

The strength of the £ is amazing reducing the return to 22.77% for people who rely on GBP
Not bad at all!

I recently read Terry's book (well, a collection of his writings in reality - including annual letters), "Investing for Growth". Highly recommend it for anybody who isn't aware of Terry's style and philosophy. He backs up his methodology with plenty of data and his straight talking style gets his points across nicely!
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  #172  
Old 09.07.2021, 12:04
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Re: Question regarding Fundsmith

So what would be the reasoning for favouring SSON over Fundsmith or visa versa?
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  #173  
Old 09.07.2021, 12:12
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Re: Question regarding Fundsmith

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So what would be the reasoning for favouring SSON over Fundsmith or visa versa?
SSON will be slightly more volatile but should produce a higher return over the long run, over the last 6 months & 1 year Fundsmith has done better.
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  #174  
Old 09.07.2021, 13:13
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Re: Question regarding Fundsmith

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I see the 12 month return on Fundsmith in CHF is an amazing 34.67%, quite something for a defensive fund.

The strength of the £ is amazing reducing the return to 22.77% for people who rely on GBP
Whilst this is incredible in itself, MSCI world returned 39.04% to 30 June in USD vs. FS 38.71% in USD. No surprise as there has been a lift in cyclicals in this time frame, 1 yr is too short to look at performance. Terry Smith himself says not to expect FS to outperform the index every year
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  #175  
Old 09.07.2021, 13:36
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Re: Question regarding Fundsmith

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Whilst this is incredible in itself, MSCI world returned 39.04% to 30 June in USD vs. FS 38.71% in USD. No surprise as there has been a lift in cyclicals in this time frame, 1 yr is too short to look at performance. Terry Smith himself says not to expect FS to outperform the index every year
Especially in a year when people will invest in any old shit promoted on reddit.
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  #176  
Old 09.07.2021, 14:34
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Re: Question regarding Fundsmith

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Especially in a year when people will invest in any old shit promoted on reddit.
i was shocked when is saw that (per the robinhood ipo docs) dogecoin accounted for 34% of their crypto revenue and 6% of overall revenue. dogecoin. yes, the joke cryptocoin.
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  #177  
Old 09.07.2021, 15:03
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Re: Question regarding Fundsmith

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i was shocked when is saw that (per the robinhood ipo docs) dogecoin accounted for 34% of their crypto revenue and 6% of overall revenue. dogecoin. yes, the joke cryptocoin.
That isn't so surprising - I assume their revenue is volume based, so the more volatile the instrument the more people trade it and the more the platforms make.

And they charge more for crypto, because it's so volatile the risks are higher even for the platforms who try hard to take no direct stake.
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  #178  
Old 28.07.2021, 06:17
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Re: Question regarding Fundsmith

I read an article last week detailing Terry Smith's 'private' investments. Encouraging to see that his personal investment philosophy is so closely aligned to those of his funds.

"Of the 29 stocks, 13 are also held in either Smith’s Fundsmith Equity fund, at £26bn Britain’s largest, or the £2.9bn Smithson investment trust run by his business. They include some of Fundsmith Equity’s best-performing stocks, such as software provider Microsoft, whose shares are up 445pc over the past five years, and Intuit, which specialises in accountancy software."

https://www.telegraph.co.uk/investin...h-backs-money/
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  #179  
Old 28.07.2021, 06:44
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Re: Question regarding Fundsmith

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I read an article last week detailing Terry Smith's 'private' investments. Encouraging to see that his personal investment philosophy is so closely aligned to those of his funds.

"Of the 29 stocks, 13 are also held in either Smith’s Fundsmith Equity fund, at £26bn Britain’s largest, or the £2.9bn Smithson investment trust run by his business. They include some of Fundsmith Equity’s best-performing stocks, such as software provider Microsoft, whose shares are up 445pc over the past five years, and Intuit, which specialises in accountancy software."

https://www.telegraph.co.uk/investin...h-backs-money/
What I don't understand is why there is any overlap at all, he has in excess of £500,000,000 in Fundsmith Equity Fund. It seems unnecessary, or even pointless. Clearly he can hold smaller companies not suitable for either fund in his personal investments as the average investment is just 3 million v his average exposure to stocks in the fund main fund of 33 million.
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