Discussion
emicen said:
b
hstewie said:
hstewie said: Scottish Mortgage Trust most definitely does not always go up.
I frequently see people on forums freaking out because they've put money into it and it's shed 10% very quickly even if it can also put it back on very quickly.
I’ve heard that fund mentioned but never really looked at it before. Last couple of years have been quite a roller coaster there!I frequently see people on forums freaking out because they've put money into it and it's shed 10% very quickly even if it can also put it back on very quickly.
It's a fund with some high conviction positions in growth/disruptive companies so there will be ups and downs.
The ups are great but a lot of people see the returns and pile in and are surprised when there's a down
Started putting some of my monthly ISA contribution in to Fundsmith & Lindsell Train in June.
Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
Fundsmith is up, LT is down, neither have matched the performance of my ongoing drip feed in to Vanguard over the period.
I started buying in to them to up the proportion of my fund that was in defensive stocks. Im glad I went with changing future contributions rather than a re-balancing buy!
Terry's annual letter to shareholders popped through the door this morning. I can't see to find an online link but 2019 performance was 25.6% which isn't too shabby. It remains my largest holding and although I sold some in summer last year (at a price about 2% below where the units are now) I can't see myself selling any more any time soon.
Fundsmith has grown 27% in the past 12 months, that’s amazing! Though when one looks at how the S&P 500 and the Dow Jones has preformed over the past 12 months- up a similar amount to fundsmith.( Intelligent Money portfolio has preformed similar too) This highlights its more down to the increase in the general US stock market than Terrys amazing skills.
jonny70 said:
Fundsmith has grown 27% in the past 12 months, that’s amazing! Though when one looks at how the S&P 500 and the Dow Jones has preformed over the past 12 months- up a similar amount to fundsmith.( Intelligent Money portfolio has preformed similar too) This highlights its more down to the increase in the general US stock market than Terrys amazing skills.
Some results from the US are amazing - the SOX, PHLX Semiconductor Index, was up 60% in 2019. And that was as chip sales slumped.
jonny70 said:
Fundsmith has grown 27% in the past 12 months, that’s amazing! Though when one looks at how the S&P 500 and the Dow Jones has preformed over the past 12 months- up a similar amount to fundsmith.( Intelligent Money portfolio has preformed similar too) This highlights its more down to the increase in the general US stock market than Terrys amazing skills.
You are completely correct in what you say.Neither I nor Terry can take any credit from a rising market (other than being correctly exposed to it). The real test is when markets fall.
I think we are both positioned well for this, though naturally I consider I am better positioned (just as Terry would consider he is)!
2Btoo said:
BlackG7R said:
6/1/19 to 6/1/20 Fundsmith is showing +27.42%
Which to my mind is brilliant. So those saying it's not done well recently are obviously not looking long term enough. This has got to be considered an investment for a minimum of 5 yrs I would say.
Terry Smith has said himself that the performance will come in spurts.
Interesting point, thanks. I hadn't spotted that. (An aside, but I don't think it's quite as good as you say; 6/1/19 was a Sunday so no price, quoted price on 7/1/19 was 371.95. Quoted price on 6/2/20 was 464.44, hence an increase of 24.9%) My concern was based on losses since the summer. I need to look more long-term. Which to my mind is brilliant. So those saying it's not done well recently are obviously not looking long term enough. This has got to be considered an investment for a minimum of 5 yrs I would say.
Terry Smith has said himself that the performance will come in spurts.
I didn't know that Terry had said the performance would be in spurts. Thanks for pointing that out!
Maybe I'll stick with it after all. I do like his investment style and he does have an excellent track record with TP and elsewhere.
"Do nothing"
I bought into Fundsmith (and subsequently Smithson) after talking to you some years ago. Just read his annual letter - makes sense to me..
edh said:
Oli - what would Terry say?
"Do nothing"
I bought into Fundsmith (and subsequently Smithson) after talking to you some years ago. Just read his annual letter - makes sense to me..
Yes. Do nothing. Which suits idle hounds like me very nicely! I recall at a Fundsmith meeting Terry being asked over what time period the performance of an investment should be judged; his reply was that a (person's) lifetime was too short a period to make such a judgement. "Do nothing"
I bought into Fundsmith (and subsequently Smithson) after talking to you some years ago. Just read his annual letter - makes sense to me..
Snag is that sometimes I get pangs of guilt and wonder whether I should be doing something or whether being idle really is the best policy.
I'm interested that you - indeed anyone - listened to me enough to make a financial decision based upon what I said. You have inadvertently cheered me up on an otherwise fairly miserable day - thank you!
2Btoo said:
I'm interested that you - indeed anyone - listened to me enough to make a financial decision based upon what I said. You have inadvertently cheered me up on an otherwise fairly miserable day - thank you!
- I wouldn't exactly say it was based on your comments alone though.... but you did point me in this direction bhstewie said:
hstewie said:Terry Smith: No chance of me making Woodford’s style drift or illiquidity mistakes
Annual letter from Terry
You've got to give it to TS, that is a a very good letter.Annual letter from Terry
I've been worried for a while that I've gone a bit heavy into Fundsmith, but he has to some extent put my mind at rest. I think it would be silly to sell a chunk now while it's doing so well, having said that all my monthly SIPP contributions are going into Vanguard now, to try and balance things up a bit.
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