Discussion
I have a significant part of my pension pot with Fundsmith, and Terry Smith is very credible. His strategy / ethos makes sense to me, I love watching the shareholder meetings on Youtube, and he also has a good track record with Tullett Prebon.
But history seems to say that this outperformance is unlikely to carry on indefinitely, and the more I read the more I'm convinced that low cost Global Index funds are the way to go for the long term, and for just being able to forget about them, and knowing you will get the market return at a lower cost.
That said I'm not going to sell any FS at the moment, I'm just not putting anymore in. All my future contributions will be going to Vanguard.
But history seems to say that this outperformance is unlikely to carry on indefinitely, and the more I read the more I'm convinced that low cost Global Index funds are the way to go for the long term, and for just being able to forget about them, and knowing you will get the market return at a lower cost.
That said I'm not going to sell any FS at the moment, I'm just not putting anymore in. All my future contributions will be going to Vanguard.
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.
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.
CrossMember said:
I don't understand why anyone would expect the performance NOT to come in spurts.
Can somebody please point me at some stocks or funds which always go up?
Personally I would separate the idea that stocks and funds are to be treated similarly. I wouldn’t short term trade a fund, they are meant as long term holdings. Can somebody please point me at some stocks or funds which always go up?
CrossMember said:
I don't understand why anyone would expect the performance NOT to come in spurts.
Can somebody please point me at some stocks or funds which always go up?
Property funds or bonds tend to be less volatile, but also tend to yield lower returns over a long period. Swings and roundabouts. Can somebody please point me at some stocks or funds which always go up?
CrossMember said:
I don't understand why anyone would expect the performance NOT to come in spurts.
Can somebody please point me at some stocks or funds which always go up?
This one is worth a watch. https://www.hl.co.uk/shares/shares-search-results/...Can somebody please point me at some stocks or funds which always go up?
I topped up as prices fell in August, wish I was braver in October now. I add to my holdings a few times a year but did sell out around brexit.
Stedman said:
jonny70 said:
This.
The majority of Fundsmiths shares are based in the USA and a fair % of the last few years growth was due to the weak GBP, as the GBP strengthens them some of these gains from a weak GBP will be reversed.
'Only' about 7% wasn't it?The majority of Fundsmiths shares are based in the USA and a fair % of the last few years growth was due to the weak GBP, as the GBP strengthens them some of these gains from a weak GBP will be reversed.
BlackG7R said:
Stedman said:
jonny70 said:
This.
The majority of Fundsmiths shares are based in the USA and a fair % of the last few years growth was due to the weak GBP, as the GBP strengthens them some of these gains from a weak GBP will be reversed.
'Only' about 7% wasn't it?The majority of Fundsmiths shares are based in the USA and a fair % of the last few years growth was due to the weak GBP, as the GBP strengthens them some of these gains from a weak GBP will be reversed.
vindaloo79 said:
CrossMember said:
Can somebody please point me at some stocks or funds which always go up?
This one is worth a watch. https://www.hl.co.uk/shares/shares-search-results/......prices fell in August...
Macron said:
vindaloo79 said:
CrossMember said:
Can somebody please point me at some stocks or funds which always go up?
This one is worth a watch. https://www.hl.co.uk/shares/shares-search-results/......prices fell in August...
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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.
emicen said:
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 invested around £5k in SMT in 2017 at around 400 - its 600 now, so 50% in two and three quarter years. Not amazing, but not a disaster. I haven't bought any more though!Gassing Station | Finance | Top of Page | What's New | My Stuff